The former Oasis guitarist is "delighted" with the news girlfriend Sara MacDonald is expecting and the couple have already been for the 12-week scan.
Noel and Sara already have a two-year-old son Donovan together, while the musician has a daughter, Anais, 10, with ex-wife Meg Matthews.
A source said: "Noel and Sara are over the moon. They're so happy that Donovan will have a little partner in crime to play with. Their family is complete.
"Noel has been up to his eyes rehearsing for shows lately and Sara has had her hands full because the family are moving house in London. The news has given them both something to smile about."
Noel, 42, and 39-year-old Sara reportedly conceived during a holiday in South Africa and friends have been joking they want to call the new addition to their family Nelson in honour of the country's former president Nelson Mandela.
The source added to The Sun newspaper: "Their pals have been joking that Nelson is a frontrunner on names as they think the baby was conceived on a holiday to South Africa."
Meanwhile, Noel's brother Liam Gallagher has praised his sibling in a new interview.
The pair have been feuding bitterly since Oasis split last August – with Liam recently describing the guitarist as the most "overrated" man in history.
However, when asked who his ultimate frontman is, Liam said: "Noel Gallagher. What makes a good frontman? Behaving yourself, and not jumping around like a b*****d."
Noel will celebrate the happy news by playing his first solo shows since leaving Oasis tonight (25.03.10) and tomorrow (26.03.10) at London's Royal Albert Hall in aid of the Teenage Cancer Trust charity.