A bronze model of the 39-year-old singer, which will be placed on an arch over-looking the street, will see her in gold hot pants.
"The Eros statue should be in Old Compton Street, not Piccadilly Circus. But we're having our very own little goddess of love, in the form of Kylie," The Daily Star quoted an insider, as saying.
"There are plans for a similar Kylie statue on Canal Street in Manchester. But London will be Britain's first city to be blessed with her bronzed buttocks.
"We don't want her bottom to be worn to a nubbin from daily rubbings from the superstitious and deviant, so we want her most famous area to be out of reach," the insider added.
The insider further said that five other statues of worthy gay icons would be joining the Australian singer.
"Kylie is our favourite gay icon, so her statue will be erected first. The other names are being held under wraps at the moment," the insider said.