Francois Tendil, a night manager at the Ritz Hotel, testified in a London court. He said he told Paul that as head of security at the Ritz, he would be better off leaving the driving to one of the hotel's staff chauffeurs.
The Daily Mail said Tendil testified that Paul did not respond to his suggestion. At the same time, Tendil said, Paul did not appear to be drunk.
Diana, Paul and Dodi Fayed were killed in the crash more than 10 years ago.
The newspaper said the testimony also indicated that the ill-fated plan to put Paul behind the wheel was apparently cooked up on the fly to evade a crowd of paparazzi outside the hotel's front entrance.
Paul was later found to be under the influence when he lost control of the speeding Mercedes in a tunnel.