According to The Mirror, K-Pez is being considered for the role of Mary Austin and if successful, will star alongside funnyman Sacha Baron Cohen who is set to portray Freddie.
Baron Cohen is said to be already working with remaining Queen members Brian May and Roger Taylor on the biopic - which is apparently due to start filming next year.
A pal of Perry's is quoted by the newspaper as saying that the Teenage Dream hitmaker would be thrilled to play Austin, adding: "Katy would love to be in the film as she is such a huge fan.
"Katy has a similar look to Mary and would be a brilliant foil to Sacha."
Mercury famously dated Mary in the 1970's for six years before admitting that he was bisexual, causing the couple to separate.
Freddie later claimed that despite having several male partners, he remained close to Austin calling her his "common-law" wife.
Before his death in 1991 after a battle with HIV, Freddie said: "All my lovers asked me why they couldn't replace Mary. But it's simply impossible."
Katy has previously praised Mercury, describing him as her 'musical idol', while also dressing up as the iconic singer at her birthday party in 2008.
The film about Freddie is being produced by Academy Award winner Graham King, with the plot focusing on Mercury's rise to fame, his time in Queen and the band's historic Live Aid performance in 1985.
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