The reality star has been dating part-time artist and warehouse worker Steve Alce for three months and has told friends she wants a "big, white wedding" this year.
The pair met at a sports dinner in October last year and spent Christmas and New Year together at her Surrey mansion.
"Kerry is telling people she really loves Steve and wants to be with him," a friend told the Sunday Mirror.
"She's head-over-heels in love and thinks he's a posh southern gent. She thinks he's good for her because he sometimes wears a suit and told her off recently for swearing in front of the kids."
Alce has two children from a previous relationship and allegedly sought their mother's blessing before looking at wedding rings in Warrington just before Christmas.
The source added: "Steve is not as wealthy as Kerry thought he was initially but that doesn't bother her.
"She is just delighted at being in a relationship with someone who wants to commit to her. He is happy going along with everything she wants at the moment but her friends are happy that he's a good influence on her."
Katona recently landed a presenting slot on This Morning to report on Dancing On Ice and also signed up for Channel 5's Celebrity Wedding Planner.
She has previously confessed that she has "never felt this strongly about anyone" with regard to Alce.