If all goes well, the former Beatle "and friends" will return to McCartney's hometown for a concert in May 2008 at the historic waterfront, the Liverpool Echo reported Monday.
Cabinet member for special initiatives, Mike Storey, spilled the beans about the McCartney gig at a private meeting with top accountants.
"We desperately want an opening event with Sir Paul McCartney and that negotiation is happening and I tell you it will happen. It will be Paul McCartney and friends," said Storey.
Critics of the year-long Capital of Culture have questioned whether the event will manage to attract the right caliber of acts, but the former Beatle's concert would be a major event for the city in 2008.
Britian has also honored McCartney by putting him on the list of the nation's top 10 living icons.
The list includes McCartney, model Kate Moss, David Attenborough, singer Kate Bush, designer Vivienne Westwood, Alan Bennett, singers David Bowie and Morrissey and actors Michael Caine and Stephen Fry.