Beyonce Knowles is set to receive £500,000 for a one-off performance.
The 'Crazy in Love' singer - who recently married rapper Jay-Z - is set to receive £250,000 for an appearance at the Bermuda music festival, with a further £250,000 to cover her expenses.
Beyonce will join Alicia Keys and UB40 as headliners of the festival, which will also feature a performance by Beyonce's sister Solange and a host of other acts and comedians.
Rock Newman, a producer of the music festival, said securing Beyonce will help put the tiny North Atlantic island - a British overseas territory - on the map: "This event will garner more worldwide attention for Bermuda than anything that has ever happened here. Folks around the world are going to say 'Bermuda has got it going on!' "
Last month, troubled singer Amy Winehouse also reportedly received a huge pay day for a one off gig. The singer was paid an undisclosed sum - believed to be £1 million - by Chelsea soccer club owner, billionaire Roman Abramovich to perform at a private concert in a converted bus depot in Russia.
Super producer Mark Ronson also raked in £1 million last month to perform at a 21st birthday party.