The former Frasier star, 55, will tie the knot with British-born Walsh, 29, in New York on February 25, it was reported today.
The pair will celebrate their reception at the city's famed Plaza Hotel, according to invites that have been sent out.
But the actor is not yet divorced from estranged wife, Camille Donatacci - leading to speculation the union may have to be postponed.
One source said: '[That would make] the invitation, which has already gone out, a collector's item.'
An insider told a US newspaper: 'Kelsey and Kayte have booked the Plaza ballroom for the reception.
'Despite the lavish surroundings, they want an intimate wedding with less than 150 guests.
'Kayte has laid out all the details, all the timings. The room will be decorated all in white, including a white cake.
'There will be a very tight guest list, and they won't allow cameras in. They're flying a lot of Kayte's family members in from England and putting them all up at The Plaza.'
Grammer, and one-time air hostess Walsh, are said to have spent $100,000 USD booking the venue.