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Is it allowed to rewrite [repeating the subject] this passive sentence:
She is reported to have died in a plane crash.
into this:
She is reported that she has died in a plane crash.
I'm in doubt because the first passive sentence has the construction:
subject + passive verb + infinitive
and I don't know whether the second sentence is still acceptable grammatically because it uses the same subject twice and makes it look ineffective.
No, your second sentence is not grammatical. It would be permissible to say "It is reported that she has died in a plane crash." In that case, the "it" would refer to the entire clause after "that" -- i.e. the fact (that she has died in a plane crash) is reported.
