The actor, who plays Phil Mitchell in the BBC soap, will earn £200,000 to take on the role of Captain Hook in Peter Pan at The New Victoria Theatre, Woking, the Daily Star Sunday reports.
His former EastEnders colleague Larry Lamb will earn £150,000 playing Abanazar in Aladdin, while Jedward will pocket that amount each to star in Jedward And The Beanstalk in Dublin.
A source said: "Steve is one of the soap world's most well-known villains. He's a massive audience puller and this is reflected in his fee. The soap's bosses were happy to let him take time out to do the panto.
© Rex Features / Geoffrey Swaine
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"He was the one everyone wanted this year as he really does get bums on seats. Everyone knows who Phil Mitchell is and EastEnders is one of the biggest shows on TV, so to have him star in your panto is massive.
"He's a great villain on TV so you can imagine what he's like in front of a live audience - everyone loves him. They really don't get better than him when it comes to playing the typical pantomime baddie."
Other top earning celebrities appearing in panto this Christmas are David Hasselhoff, who is getting £125,000 plus a luxury hotel room to stay in for the duration of his version of Peter Pan. Pamela Anderson is reportedly being paid £125,000 to play the Genie in Aladdin.
© Rex Features / Steve Meddle
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McFadden's Peter Pan co-star, The Only Way Is Essex's Harry Derbidge, will receive just £15,000 in comparison.
Chloe Madeley is starring as Beauty in Beauty And The Beast for £10,000, Ray Quinn will get £30,000 for playing Prince Charming in Cinderella and Gareth Gates will earn £40,000 as the lead in Aladdin.
Strictly Come Dancing judge Craig Revel Horwood is also said to be getting £50,000 as the Wicked Queen in Cinderella.
"The top earners really can't refuse the big-money offers. If the offer comes in they'll do everything in their power to juggle other work commitments," the source added. "It's a very lucrative job to get and if your star is rising or you're a household name then you can get big bucks."
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