The official announcement will be made on January 1, but the Sun reported that a close friend had confirmed Starr's name would appear on the list for 2018. "Ringo was totally knocked sideways, but is chuffed to bits", said the source.
McCartney previously noted that his bandmate deserved a knighthood, stating to the NME in 2011 that it was "about time".
Lennon gave his own MBE back in 1969 in a protest against the Vietnam War, and claimed that the band smoked marijuana in a palace toilet before getting their awards - something The Sun says Starr has always insisted he can't remember.
McCartney was knighted in 1997 at the age of 54, and Starr, now 77, is said to be excited after a letter from the Palace in late November.
"But giving Ringo a knighthood will go some way towards recognising the enormous contribution The Beatles made to popular music".
Asked whether he could put in a word with the Queen, he joked: "The last time I went by she was out".
Starr's charity work includes donations to causes supporting AIDS awareness, abused children, human rights, poverty around the world and the creative arts.