After giving the audience an impromptu performance of a Whitney Houston ballad at the Tranny Shack night recently in Soho, she revealed: "Everyone in here tonight is like me."
"We're bisexual, I f**k girls. Whatever. I am straight, but I play with the old banjo."
Price then went on to talk about Alex Reid, saying: "My ex-husband was a tranny," and boasting that they used "a strap-on."
Price then offered the audience the chance to hear another song or for her to do some more comedy.
Reid recently declared on video that he's a "crossdressing cagefighting monkey boy".
He told an interviewer: "I'm in the trenches. I'm getting a lot of incoming flack. There's a lot of horrible things being said about me - and I'm quite outspoken, but the one thing is, it does stress me, but I'm strong. I'm a soldier."
Watch the video of Katie Price talking on stage in Soho (warning: adult content):