Bono, shown here performing at the Grammy Awards in 2009, is rumoured to be coming to Moncton this summer. (Mark J. Terrill/Associated Press)

The iconic rock band U2 will headline a music festival at Moncton's Magnetic Hill outdoor concert venue in the summer, sources have told CBC News.

Moncton's Magnetic Hill has attracted bands such as the Rolling Stones and AC/DC in the past.

Although the city won't confirm the band's involved in the summer festival, sources connected to U2 have confirmed to CBC News that the band will perform in Moncton.

Ian Fowler, the general manager of economic development, tourism and culture, said the city's staff is working hard to line up a strong summer concert season.

But Fowler would not confirm the speculation that U2 would be coming to Moncton.

"We are always very closely guarding what we say about who we are negotiating with. We will never tip our hand as to who or when or how, other than to say we have irons in the fire," Fowler said.

"We are hopeful in the not-too-distant future that some of that effort will turn into a contract that we can bring to council relative to putting something on Magnetic Hill this summer."

Concert promoter Donald K. Donald and Live Nation Global Touring will hold a news conference on Monday to announce details of the Magnetic Hill Music Festival for 2011. Live Nation is promoting U2's current world tour.

The Magnetic Hill concert venue has allowed the city to attract large crowds. It is estimated the Rolling Stones drew more than 78,000 people.

It is estimated that 70,000 people showed up to the AC/DC concert in 2009.

Some U2 fans are not waiting until the official concert announcement to begin making plans to see the legendary rock band.

Janice Currie, a Fredericton resident, said she's already booked her hotel room in Moncton for the last weekend in July.

"It wasn't easy finding hotels. It seems like most hotels have increased their prices and put some limitations for having to book for two nights instead of one so that was a flag that the rumour could be true," she said.

Hotels in Moncton say they've been getting a lot of inquiries and rooms are filling up fast, even though an official announcement is still days away.