New! magazine claims Katie, 40, and Kris, 29, filmed an explosive proposal for her reality show My Crazy Life – but are desperate to keep the wedding bombshell quiet until it airs next week.
Instead, the source claims, Katie is pretending to be single so the engagement has maximum impact – with her ramming the point home last week by posting: "Being single is the best way."
The mag's insider insisted: "All these denials and protesting about how much she loves being single aren't quite true.
"Yet again Katie is keeping everyone guessing. The fact is that there's an engagement on the cards."
The source went on to reveal the proposal took place on their romantic trip to Glasgow last week.
And, in yet another twist, the source said it was Katie who proposed to Kris – with the show ending on a cliffhanger as viewers wait to see what he'll say.
However, the insider also said that Katie's pals are firmly against the union, saying they think Kris is even worse than her cross-dressing cage fighter ex Alex Reid.
"Katie has made no secret about wanting to wed Kris, but everyone in her inner circle knows how fame-hungry he really is," they said.
"They think he's worse than her ex Alex Reid, and they know if a televised engagement is on the cards he's not going to say no."
The Sun exclusively revealed last week how the next episode of My Crazy Life will see Katie, who faces a bankruptcy hearing today, blaming her exes for her financial ruin.
She filmed scenes explaining: "I will be out of bankruptcy in a year. It's not that bad."
The star added: "I've got nothing to be ashamed of any more. Loads of people go through it like me.
"It's just a matter of going through the motions. That is what it has to be."
The Sun Online asked Katie's rep if she is engaged, but have not received a reply.
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