The two-and-a-half hour show will be held in London's Olympic Park, and watched live by a potential audience of millions.
A committee source told the Daily Mirror: "It is imperative the games close in spectacular fashion and that there is substance as well as style.
"The committee wanted four major artists, representing Britain over the past 50 years, to headline."
The finale to the London 2012 games will also feature Emeli Sandé and is being overseen by Kim Gavin, who worked as creative director on Take That's comeback 'Circus' tour.
A spokesman for Gavin said: "Kim has worked with Take That before and the boys, including Robbie Williams, will put on their most dazzling show."
The show will also mark George Michael's stage comeback after being diagnosed with pneumonia last year. He has not performed live since last November.
Gavin has also been responsible for a number of other major live events in the UK in recent years, including the Concert For Diana and the Help for Heroes gala.
Watch the video for Take That's 'The Flood' below: