“The princes are considering a number of possible options for how they would like to remember their mother,� said Harverson. “This is just one possibility among several and I would not like to go into any more detail while discussions are ongoing.�

Managers at Wembley, which will be the largest roofed stadium in Europe, hope the concert will boost the venue’s profile in its launch year and give a positive worldwide image for British engineering in advance of the 2012 London Olympics.

Proceeds from the event, which would be televised worldwide, would go to causes favored by Princess Diana, the Sunday Mirror reports. .

The princes want to have control over how the 10th anniversary of Princess Diana's death is handled.

Sir Elton John, a friend of the princess who performed Candle In The Wind at her funeral, is thought likely to appear on the bill.

The song, which was rewritten as a tribute to Diana, became the biggest-selling single of all time.

The former royal press secretary, Dickie Arbiter, told BBC News 24 the idea for the concert came from the princes themselves.

"It's a good idea and I think the sooner they get it out as an official announcement, out in the public domain, that everybody can go about organizing it, asking the right people," he said.

He added: "Pop stars have got full diaries for the next few years, so it's giving up a day to appear in a pop concert is going to take quite some planning."

Other artists who are likely to take part include Beyonce, George Michael and Kylie Minogue, according to The Sunday Times.

Stars appearing at the concert would be asked to waive their fee to benefit a number of charities championed by both Diana and the princes.