The 'Rocket Man' singer is spending millions of pounds on the gallery which will be located in the grounds of his Windsor estate.
A source said: "He has over 2,500 photographs in his collection, including works by Robert Mapplethorpe, Andy Warhol and Herb Ritts. He wants somewhere to showcase them.
"He is also going to build a house next to the gallery for a curator to live in."
The 60-year-old singer recently revealed he couldn't use a washing machine until he was 43.
Elton - who overcame cocaine addiction - confessed: "I wasn't ashamed of being a drug addict but I was ashamed to ask how to work a washing machine. I couldn't do anything for myself."
The flamboyant performer wouldn't let anyone tell him what to do when he was younger because his ego was so out of control.
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