'This is where I am guilty and I accept everything that I have done': Joran van der Sloot 'confesses' to murdering Natalee Holloway in undercover video

A decade after Alabama student Natalee Holloway's mysterious disappearance, the prime suspect in her murder appears to have 'confessed'.

Joran van der Sloot, who is in a Peruvian jail for the murder of another student, Stephany Flores, was caught on an undercover video admitting he had lied to the police and mocking the investigation into Holloway's death.

Speaking about the case in his native Dutch, he then appears to make a shocking confession about the murder to his wife and the undercover reporter from Radar Online saying: 'yes, this is also where I am guilty and I accept everything that I have done.'

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A decade after Alabama student Natalee Holloway's (left) mysterious disappearance, prime suspect Joran van der Sloot has made an alleged 'confession' in jail (right)

Van der Sloot was the last person seen with Holloway, who vanished while on a trip to Aruba.

Natalee was 18 and on a graduation trip with 130 classmates from Mountain Brook High School just outside Birmingham, when she disappeared on May 30, 2005.

She was last seen with three men including van der Sloot, a then-17-year-old Dutch national, after an evening at a nightclub.

Van der Sloot, who lived on the island, has always been the main suspect and the victim's father Dave Holloway believed he got help to take Natalee's body and dump it in a crab pot out at sea.

Yet, while the 28-year-old was arrested twice on suspicion of her murder, he has never been charged

He is currently serving a 28-year sentence in Peru for killing business student Flores on May 30, 2010 - the fifth anniversary of Natalee's disappearance.

Now the victim's family have spoken out saying van de Sloot can 'rot in jail' after he appeared to make a confession to the undercover reporter at the prison in the mountains of Peru.

He has also offered to reveal the truth about what happened to Holloway a decade ago. 

It is not clear how the reporter gained access to the jail or to the suspect. 

Van der Sloot (right, on his arrest in Peru for a separate murder) is currently serving a 28-year sentence in Peru for killing business student Stephany Flores (left) on May 30, 2010 - the fifth anniversary of Natalee's disappearance

Hidden camera footage shows the convicted killer branding the Holloway case 'one of the worst police investigations that ever took place.'

When questioned by the reporter if he was referring to Natalee, he responded: 'Yes yes yes.

'Yes, this is also where I am guilty and I accept everything that I have done.'

He also described how he 'always lied to the police'.

'I made up so many stories against the police...' he added.

'Also when I was younger, I never told everything. The police just never knew what they had to ask me.' 

Prior to killing Flores, Van der Sloot had been attempting to extort money from Natalee's mother, Beth Holloway, claiming he could sell her her daughter's remains. 

Van der Sloot had allegedly offered to reveal the location of the teen's remains in exchange for $250,000. 

Mr Holloway told Radar Online that he hopes van der Sloot 'rots' in the Peruvian hellhole jail after news he is trying to worm his way out of prison with promises of revealing where his daughter's body is buried.

'He could sit down there and rot in the prison system he's in now,' Mr Holloway said.

'I do know the Peruvian prison system he's in now is pretty harsh and obviously he's trying to get to Aruba or somewhere else and I don't think that's is going to happen.'

'He's played that game too many times!' he added.

Van der Sloot is expected to remain in prison until 2038 and then be extradited to the United States to face charges of extortion and fraud.

Last year, Holloway's family commemorated the ten year anniversary of her disappearance on the school trip to Aruba.

The victim's father Dave Holloway had a judge declare Natalee dead in 2012, against the wishes of his ex-wife, although her body has not been found.

'I had been around long enough to know that if a young girl leaves a club with three guys and hadn't been seen or heard from in three days, something bad had happened and there was a 99% chance even then that we would never see her again,' he told DailyMail.com.

'She was a straight-A student who had worked hard and won a full scholarship to the University of Alabama,' said her father. 'But she was killed within days of graduating high school. It was so unfair.'

Holloway's devastated parents Beth (pictured) and Dave may finally have the answers they have craved after van de Sloot appeared to make a confession to the undercover reporter at the prison in the mountains of Peru

But her heartbroken parents were offered a sliver of hope last year after a new witness came forward claiming he had seen Van der Sloot carrying their daughter's lifeless body into then-building site of a timeshare complex.

Jurrian de Jong said he did not come forward at the time of Natalee's disappearance because he was involved in Aruba's drug trade and was on the island illegally.

'I saw that Joran was chasing Natalee into a small building under construction,' de Jong told Inside Edition. 

He added: 'In about five minutes he came out with Natalee in his arms, and slammed the body of Natalee on the floor, and then he made an opening in a crawl space… I knew she was dead.' 

Van der Sloot however dismissed de Jong's story. 'He told me he knows this guy. He's a crack head, a f***ing liar, a compulsive liar,' his lawyer Maximo Altez said. 'He's homeless and wants money to buy drugs.

'You know the mind of a crack head, he'll do anything to get money, and that's all he wants,' added Altez. 'You shouldn't waste your time listening to him. Joran is innocent, he didn't do that crime.'

Mr Holloway, though, dismisses van der Sloot. 'All we have ever heard are Joran and his lies,' he told DailyMail.com.