The speculation began when Bates, 68, and Paulson, 42, joined their American Horror Story: Roanoke costars at a PaleyFest panel in Beverly Hills on Sunday, March 26. Bates repeatedly called Paulson "the people's princess," which was the Princess of Wales' nickname before she died in a car crash at the age of 36 in 1997.
Last month, it was confirmed that Murphy's anthology series would next concentrate on Prince Charles and Princess Diana. The pair were married from 1981 to 1996 and they are parents of Prince William and Prince Harry. Prince Charles has been married to Camilla Parker Bowles since April 2005.
Earlier this month, Paulson told Entertainment Tonight that she would be thrilled to take on the Princess Di role. "I wanna play the Queen Mother!" she said at the time. "I don't think [Murphy's] gonna let me do that. That might be a bridge too far. He might also be like, 'Oh, lady... no!' I could play one of the corgis."
Currently, season 1 of Feud focuses on the historic relationship between legendary actresses Joan Crawford (Jessica Lange) and Bette Davis (Susan Sarandon) during the making of the 1962 horror camp classic What Ever Happened to Baby Jane?.
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