Katie Price left staggered by Alex Reid's '£6million divorce demand'

They split just weeks before what would have been their first wedding anniversary.

But Katie Price's estranged husband Alex Reid believes their brief reunion is worth £6million.

The cagefighter is said to have demanded the large settlement from the glamour model, who thinks £700,000 is a more adequate reflection of their short time together.

Demands: Alex Reid, spotted out in Soho at 3am on Sunday morning, has reportedly asked for £6million in his divorce settlement

A source close to the exes told The People: 'Alex's demand for her to pay him £6million as part of a divorce settlement have left her staggered.

'She can't help but think Alex is a very deluded man indeed.'

Reports of Reid's demands comes as the ex-Hollyoaks actor was spotted on a night out in London on Saturday.

The 34-year-old was accosted by a transvestite as he walked through the streets of Soho at 3am.



Last week, Reid finally moved the rest of his belongings out of Price's £2.5million Surrey home after she offered to buy him a £500,000 property.

Unimpressed: Katie Price, pictured in the West End on Thursday, has offered Reid £700,000

A friend said: 'As far as Katie was concerned it was a fair and decent offer. Alex gave every sign that he was also thinking along the same lines too.'

The cagefighter laughed off reports he has been sleeping in a budget hotel since moving out of Price's mansion.

He wrote in his Twitter yesterday: 'Hey guys,apparently I'm now living in a low budget hotel, I mean, come on, please? I checked in and paid for my good buddy Ricco, who's fighting.'

Reid's alleged demands comes a week after he met up with his ex-wife at the Alexander House Hotel and Utopia Spa in East Grinstead, West Sussex.



No paparazzi! Reid shrugged off attention from a transvestite during his late night in Soho

The mother-of-three immediately took to Twitter after, insisting: 'People (are) asking and NO me and Alex are not together.'

Price announced the couple had split on January 18 in a lengthy statement, accusing Reid of being 'fascinated' by his new celebrity status.

Aside from her impending divorce, Price has been battling her ex-husband Peter Andre after their daughter Princess Tiaamii was accidentally burned her back on a heated towel rail during a trip to Switzerland with her mother.

Following the incident, police were tipped off and visit Price at home, but Andre insisted he wasn't the one who contacted them.

In a statement on her website, Price accused Andre, 37, of making the incident public to 'score points' and 'portray her as a bad mother.'



Playing for laughs: Price dresses as Freddie Mercury in drag - complete with a moustache and body hair - as she performs Queen's I Want To Break Free

His publicist Claire Powell said Andre only learned of the investigation when contacted by the police.

In the initial aftermath of the incident, Price was heard yelling 'I wish you'd get in your car, crash and die,' to Andre, in a phonecall which was leaked to a Sunday newspaper.

The incident was said to have horrified Andre's new girlfriend Elen Rivas, whose older sister Mayte was killed in a road traffic accident when she was just 10.

A source close to Rivas told The Sun: 'Elen was furious when she heard what Katie said. It was below the belt and so insensitive.

'It brought back so many painful memories and she could not get over why somebody would wish that of someone.'

Meanwhile, Price managed to win over some of her critics by dressing in a moustache and body hair as she became Freddie Mercury in the Comic Relief show Let's Dance on Saturday night.

Price, 32, dressed up in a PVC outfit, black bouffant wig and stockings to recreate Mercury's iconic performance in the video for Queen's hit I Want To Break Free.

The glamour model just managed to scrape through to a place in the dancing competition final after comedian Russell Kane went straight through after receiving the most public votes.