"Kate excused herself from a meeting at Jigsaw, the fashion store with which she'd recently started working, to take a call from William in a room out of earshot of the other buyers," Lacey wrote, according to a book excerpt published in the Daily Mail.
"She shut the door for more than an hour. When she came out, she was single."
The split only lasted a couple of months.
The couple later addressed the split in their engagement interview in 2010.
"We were sort of both finding ourselves as such and being different characters and stuff, it was very much trying to find our own way and we were growing up," Prince William said at the time.
"At the time, I wasn't very happy about it but actually it made me a stronger person," Kate shared.
"You find out things about yourself that maybe you hadn't realised, or I think you can get quite consumed by a relationship when you are younger and I really valued that time for me as well although I didn't think it at the time, looking back on it."