This will be the Australian singer's biggest show since battling breast cancer last year.
A source said: "We're just signing off some details, but it all looks good."
It has not yet been decided if Kylie will perform her biggest hits or introduce other acts.
Meanwhile, it was confirmed last night (30.04.07) Take That will also sing at the Concert for Diana, organised by her sons Princes William and Harry.
It has been rumoured former bandmate Robbie Williams could join them on stage.
A source told
"In the past few months a dialogue has really opened up between Robbie and his ex-bandmates. He was touched by how supportive the lads were while he was in rehab."
Other acts confirmed to appear include Sir Elton John, Kanye West, Pharrell Williams, Lily Allen, Duran Duran, Orson, Joss Stone and Rod Stewart
Prince William said: "We would like it to represent exactly what our mother would have wanted - a big concert full of energy, fun and happiness."
The concert will take place at