Tabloid source was IT girl Tara Palmer-Tomkinson

The phone hacking trial court has heard that socialite Tara Palmer-Tomkinson was the source of an infamous News of The World story.

The story in question was the front page splash about a man dressed up as Osama bin Laden gate-crashing a royal party.

Former News of the World Royal Editor Clive Goodman made the claim while being cross-examined during the hacking trial at the Old Bailey.

Goodman described how Ms Palmer-Tomkinson, who had been at the royal party, was a contact of former News of the World Editor Andy Coulson and had tipped him off about the story.

In the witness box, Goodman said: “She phoned Mr Coulson, he phoned me, passed on the information.

“I then phoned Tara, got the information myself and put a story together with the help of members of the Royal household.”

During his cross-examination, Goodman denied taking money that was meant to pay for story sources.

Goodman also claimed that Coulson was aware of a £500-a-week deal made with private investigator Glenn Mulcaire to hack Royal household phones between 2005 and 2006.

Goodman admitted that he personally handed over £500 in cash each week to Mulcaire, who waited outside the Wapping offices in his car.

Goodman and Mulcaire pleaded guilty to phone hacking in 2006.

Coulson, 46, denies conspiracy to hack phones and conspiracy to commit misconduct in public office.

The trial continues.