Greek designer Christina Stambolian, who created the black gown worn by Diana, Princess of Wales, on one of the most talked-about nights in royal history, has revealed that much of it was made in Volos, the port city in central Greece where she grew up.

More than three decades after Diana first wore it, the so-called revenge dress is back in the spotlight. It went on public display at Sotheby’s in London on 18 September, during London Fashion Week, and remains there until 24 September before travelling to Hong Kong and Geneva. It will then go under the hammer in New York on 9 December, with an estimate of $150,000 to $300,000.

Diana wore the dress on 29 June 1994 to a gala at London’s Serpentine Gallery. It was the same day a television interview was broadcast in which her estranged husband, then Prince Charles, admitted infidelity. Pictures of her arrival made front pages around the world, and the black, off-the-shoulder design became one of the most recognisable garments in modern fashion.

Stambolian, who has lived in London for many years, first met Diana by chance at a restaurant in the city. In 1991, the princess arrived unannounced at the designer’s boutique and chose the black silk jacquard and chiffon for the dress that would later make history.

Diana initially had doubts, feeling the design was more revealing than anything she had worn before. The dress stayed in her wardrobe for almost three years, until the evening her appearance turned it into a symbol of confidence and independence.

In 1997, shortly before her death, Diana included the dress in a charity auction of pieces from her wardrobe, held to raise money for AIDS charities. It sold for $74,000. The New York sale will be only the second time it has changed hands at auction.

Speaking to Marie Claire Greece ahead of the dress’s return to public view, the fashion designer described how moved she was at the prospect of seeing her creation again, and shared a previously unknown chapter of its story. A large part of the work, she said, was done in Volos, under the Greek light. “I had no idea it would become so famous,” she said, looking back on a piece that began life as a cocktail dress and went on to earn its own place in fashion history.

Stambolian said she planned to visit the London display, which would be the first time in many years that she had seen the dress in person.”I’ll definitely go to London. It will be very emotional to see it again, that’s the truth. So much time has passed, so much has happened and, sadly, Diana is no longer with us. Her death was so unfair and so sudden. She was so young. It all happened so quickly, and I remember being terribly upset at the time. It was a shock,” she said.

She last saw the dress up close many years after Diana wore it, at the home of the man who had bought it. “I saw it many years ago at the home of the person who bought it. We were friends, and I actually stayed the night at their house, and that’s where I saw the dress again. But not since then. Only in photographs, in newspapers and magazines.”

When asked why she thinks the dress has never been forgotten, the designer said: “Because it belonged to Diana. If another public figure had worn it, perhaps it would never have taken on that significance. Diana was adored in those years. She was number one in London, and far beyond. She was a wonderful person, with a lovely nature and a great sense of humour. She laughed a lot, she smiled a lot.

Diana loved the dress very much. I remember we laughed, because she told me she was worried that after three years it wouldn’t fit her any more. In the end it did, it was just a little tight. You can see that slightly in the photographs.

There is, however, one detail in the dress’s history that is almost unknown: a large part of the work on it was done in Greece. “I worked on it for a long time in Greece, in beautiful Volos, where I grew up. I had gone there for a short holiday and felt much freer, so I worked on the dress there. The climate was far better, there was the sun, the light. Because the dress was black, it was hard to see all the intricate work on it, so good light was essential. I also had plenty of time to make it exactly the way I wanted. Afterwards, I took it back with me to London.

Marie Claire asked Stambolian whether she’d have ever expected the dress to reach the astonishing price it’s at today. “When I heard it, I was amazed. Then again, it is one of the truly famous dresses. I was actually trying to think which other dresses in the world have achieved that kind of fame, and I couldn’t come up with many. There are very few statement dresses with that kind of power. But back then, London was much more alive. There was a real creative rivalry, a desire to stand out and make something genuinely special. A dress could become famous around the world, just like an actor or a film. Today I feel that has been lost. Everything is different now. Those years were very special. Everything meant something.”