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.
Penalties for people who drop litter could reach as much as £150 under plans set out by the Department for Communities and Local Government.