Prince Albert walks the red carpet with his daughter as they honour the late Princess Grace in New York

Prince Albert II of Monaco has joined his daughter on the red carpet to honour his late mother, Princess Grace.

The 66-year-old was photographed with Jazmin Grace Grimaldi, 32, in New York at the Princess Grace Awards in Manhattan.

The event, held inside The Pierre Hotel on Wednesday, is celebrating its 40th year.

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The awards were launched in 1984 by Prince Rainier of Monaco, two years after his wife's tragic death in a car crash aged just 52.

They support emerging talent in the arts and in the past 40 years, the Princess Grace Foundation-USA has awarded more than $19 million USD to more than 900 recipients in theatre, dance and film.

"I think she would be incredibly proud and thrilled that her legacy has continued this way, and that the foundation and its awards has had a tremendous life-changing impact on these artists," Prince Albert told People.

During her life, Princess Grace – known as Grace Kelly before her marriage to Monaco's head of state – secretly supported and mentored up and coming artists, providing guidance and financial assistance.

Prince Albert said of the awards: "It's a great satisfaction, and it's also inspiring to see that my father's commitment to carry on my mother's legacy and her passion to support the arts community has impacted so many lives.

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"My mother really wanted to recognise young talent in these fields and help them because it's never easy at the beginning of a career in the arts. It's a long road to success, and it's a struggle. She knew that, and she wanted to help these young emerging talents."

The awards also celebrate artists who are dedicated to giving back to their communities.

Prince Albert presented this year's Prince Rainier III Award to two-time Academy Award winner Michael Douglas in recognition of his charitable contributions and commitment to the arts.

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Douglas said: "I'm honoured because I knew Grace Kelly when I was a young man. I remember her quite well, and she was a stunning person. She had an inner flame – she shined from the inside out".

Prince Albert described the actor as "a great friend of my family" adding "he's engaged in many different causes, some very worthwhile causes".

"That's an inspiration for young artists. I hope that my children will get to understand that and be inspired by all of that."

Prince Albert was joined by his eldest child, who lives in California where she works in the entertainment industry as a singer and actor.

Grimaldi was dressed in a metallic gown by New York couturier Alex Teih and did her hair herself.

Posting on Instagram before the event she wrote: "A reason for the season celebrating my Grandmothers legacy, love and support for the arts and artists @princessgraceus 40 years strong!"

Grimaldi's mother is American real estate agent Tamara Jean Rotolo, who met Prince Albert II while on holidays at the Côte d'Azur, on the French Riviera, in 1991.

Prince Albert finally confirmed his daughter's paternity in 2006, when she was a teenager. Rumours had been swirling for years before the story finally broke.

Because Prince Albert and Grimaldi's mother never married, she has no claim to the Monegasque throne.

She now has a relationship with her father and his twins 10-year-old Prince Jacques and Princess Gabriella, and wife Princess Charlene, and regularly travels to Monaco for public and family events.

Grimaldi is also close with Prince Albert's other son, 21-year-old Alexandre Grimaldi, was born from a previous relationship with Nicole Coste.