Distributor Le Pacte told AFP it had the poster for "Diana" removed from near the entrance to the Pont de l'Alma tunnel on Monday, ahead of the film's French premiere on Wednesday.
"We asked for the removal of this poster after controversy in the British media," a source at Le Pacte said, adding that the poster was only one of about 1,000 put up in Paris to promote the film.
Diana, her boyfriend Dodi Fayed and their driver were killed after their car smashed into a pillar in the Pont de l'Alma tunnel while being pursued by photographers.
Several British newspapers criticised French promoters for putting up the poster at the site, with the Daily Mail quoting a friend of the princess, Rosa Monckton, blasting the move as "despicable and crass".
The Daily Star described the placement of the poster as "Di-abolical" and "heartless".
"Diana", starring Naomi Watts, received a critical drubbing when it premiered in London last month. The film purports to tell the story of Diana's romance with UK-based Pakistani heart surgeon Hasnat Khan.
Since Diana's death, the area around the Pont de l'Alma has become an unofficial monument to the princess, with messages by her admirers scrawled on the bridge over the tunnel.