The Sunday Mirror reports that the brothers would directly arrange the event, which would reportedly include Elton John, scheduled to be held at London's redeveloped Wembley Stadium on July first.
Proceeds would be donated to a British homeless charity and other causes supported by Diana.
A spokesman for Prince Charles could not immediately confirm the report.
Another newspaper is reporting that the brothers plan to approach Madonna, Beyonce and others to perform at the event.
Diana, her boyfriend and their driver all died when their car crashed at high speed in Paris in August of 1997.