The Australian singer is thought to have agreed on the more modest figure after she was said to have initially demanded a fee of around £2.5m to join returning judges will.i.am and Sir Tom Jones on the BBC One show.
A senior BBC source told the Daily Star newspaper: "We cannot believe our luck in signing Kylie for the show. People were saying she wanted mega-bucks, but Kylie doesn't need the money and this isn't about the cash.
"We are paying her a quarter of the money ITV are paying someone like Sharon Osbourne. That has got to be a good deal."
It is hoped the 45-year-old pop princess can boost dwindling viewing figures for the prime-time show, which will now air three months earlier than usual in January 2014 to avoid a clash with rival ITV programme Britain's Got Talent.
Kylie, Tom and will.i.am are due to be joined by a fourth mystery judge following the departure of Jessie J and Danny O'Donoghue earlier this year.
Scream & Shout hitmaker will said: "While I will miss Danny and Jessie, I'm excited to be returning for season three and to work with Kylie and Tom. Together we will mix it up and bring new energy and ideas to the show."
24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.
Martha Stewart and Snoop Dogg gave a taste of their new cooking show on Ellen, and it's everything. Read More »
Los Angeles police are investigating an attack in which Donald Trump's star on the Hollywood Walk of Fame was vandalised. Read More »
10 epic pics.
All the deets.
South AfricaCity Press
Johannesburg CBDResourcing Solutions
HousesR 6 850 000
HousesR 3 500 000
HousesR 3 300 000