The event is being organised by veteran Bollywood actor Sanjay Dutt and Raj Kundra - husband of Shilpa Shetty - reports Mumbai Mirror.
"She will be here on March 6 and stay at a suburban five-star. Due to her rehearsals, they will ensure her hotel is not too far away from the venue," a source claimed.
"She will perform some of her biggest hits, including her latest album Love? She will fly out of the country the next day."
The Mumbai concert is being held to mark the opening ceremony of the Andheri Sports Complex. Kundra confirmed the planned stage show, stating: "There are many surprises in store."
Caterina Lopez, cousin of the actor-singer, made her Bollywood debut last year.
Indian composer Bappi Lahiri previously accused Lopez of plagiarising an old Indian film song with her track 'On The Floor'.