A source has 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 on Monday night that Take That will also sing at the Concert for Diana, organised by her sons Princes William and Harry. It has been rumored that former bandmate Robbie Williams could join them on stage.
A source has said: "Princes William and Harry know that to get Robbie back with Take That would be a real coup. Robbie has been fairly receptive to the idea and Take That would love it to come together.
"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 London's Wembley Stadium on July 1 - which would have been Diana's 46th birthday.
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