According to the Daily Telegraph, the minimum fine is set to double up to £100. Current fines set by councils range between £50 and £80.
Ministers are said to be preparing a "clutter-free legacy for England".
And Communities minister Marcus Jones said those who drop litter would be "hit in the pocket".
He added: "Dropping litter is the kind of anti-social behaviour that really gets people's backs up, and rightly so.
"It's thoughtless, selfish and ruins shared spaces for everyone. Not only that, litter clearance and disposal costs hundreds of millions of pounds for councils every year - money that could be going on vital services.
"If litter louts can't put their rubbish in the bin perhaps we can hit them in the pocket instead."
The Clean for the Queen campaign is a nationwide clean-up operation, ahead of Her Majesty's 90th birthday.
Its chief executive, Adrian Evans, said some people thought it was their "human right" to drop rubbish but has urged the public to challenge offenders.
"The way I have done it in the past is to treat it as though they have made a mistake and something has inadvertently fallen out of their bag or pocket. Sort of, 'Oh no, did you mean to drop that?'"
In 2015, councils in England and Wales called for new powers to tackle the "huge and spiralling" problem of people throwing litter from vehicles.
In London, vehicle owners can be fined if someone drops litter from their car.

Langham Dome in north Norfolk, one of only six remaining training domes in the country, was built in 1942 and sits on the edge of a former RAF base.
Film of enemy planes was projected onto its walls for target practise.
A museum in the restored concrete structure is now open to visitors following grants from English Heritage and the Heritage Lottery Fund.
Listed as a Scheduled Ancient Monument in 1986, plans to restore the dome at the former RAF Langham, seen at the forefront of both defence and attack during WW2, began more than 20 years go.
The restoration of the 25ft (7.6m) tall and 40ft (12m) wide dome got under way in 2013 after the project secured grants of nearly Â£650,000.
One of the key issues was to protect the metal grid framework on which the dome is based, said the Friends of Langham Dome.
Extensive work, involving 17 tonnes of rendering sand on the shell, was also required to ensure it was watertight.
Malcolm Crowder, from the North Norfolk Historic Buildings Trust, said: "The dome was built essentially as a temporary structure over 70 years ago.
"Crumbling concrete on the outer surface had allowed water to get in, causing serious deterioration to the metal framework. This became a vicious circle of decay for both the concrete and metal structure.
"This situation has been reversed and the building... is now fit to grace the Norfolk skyline and educate the public for at least another 50 years. It's a truly outstanding heritage project achievement."
The Langham Dome Museum is open until the end of October.

6 January 2017 Last updated at 07:14 GMT
Louis Nethercott, 27, from Wiltshire, was medically discharged from 42 Commando in Bickleigh, Devon, last year after struggling to cope with seeing his colleagues killed in Afghanistan.
Alongside another former Marine, Anthony Lambert, the pair are back in the UK after completing a gruelling trek across Borneo.
Louis, who grew up in Bristol, has four more islands to go - Papua New Guinea, Madagascar, Greenland and Baffin.
Penalties for people who drop litter could reach as much as £150 under plans set out by the Department for Communities and Local Government.
[NEXT_CONCEPT]
Restoration on an at-risk World War Two building which was used to train anti-aircraft gunners has been completed.
[NEXT_CONCEPT]
A former Royal Marine who's recovering from post-traumatic stress disorder has completed the first stage of a challenge to cross the world's five largest islands unaided.