The 26-year-old Irish singer has a bar in LA, which owes nearly £100,000 in taxes, and has agreed to spend four weeks in the Big Brother house for £500,000.
A source said: “This money will allow Nadine to clear all her debts in America and start the Girls Aloud tour with a clean slate. Initially, when she was approached by the station to take part, she turned it down flat.
“But when she met TV executives in London last week and saw how much was on the table she eventually agreed. They simply made her an offer she couldn’t refuse.”
She will be paid the second highest amount ever given by the TV channel for the show – hyperactive twins Jedward snagged £1 million for their time in the house.
Coyle, who has struggled with a solo career since Girls Aloud went on hiatus in 2009, will be one of 12 stars to enter the Big Brother house in August.
So far, ex-Arsenal footballer Freddie Ljungberg is due to appear, plus comedian Julian Clary and Coronation Street’s Julie Goodyear are in negotiations to take part.
Controversial journalist Samantha Brick has also been approached, as has ex-News of the World journalist Paul McMullen.