Michael Faux said Burrell told him he removed the ring from the princess's hand when he attended her body after the crash in 1997, the Daily Mail reported.
"He said he took it off the body in Paris. He said there was still blood on the ring and he could prove it was hers by DNA," Faux told the High Court in London.
Burrell allegedly confessed to Faux that he removed the "engagement ring" after having him sign a confidentiality agreement, the British newspaper reported.
"I told him in not so many words that I was disgusted with him," Faux said.
Faux said Burrell once told him he had so much of Princess Diana's belongings that he would, "need a truck to move all the jewelry and items there was so much of it."