The former glamour model, who is also mum to Harvey, 13, Junior, 11, Jett, two, and Bunny, one, says she will let eight-year-old Princess participate in a pageant that she's been approached to enter this summer - but only if Princess' dad, Peter Andre, agrees.
Speaking to OK! magazine, she explained, 'As long as she doesn't have to wear fake tan, fake hair and fake nails, I'm happy for her to do it.
'She's the one who wants to do it and she's pushing me, saying: "Muuum, when's it going to happen?"'
Katie admits that she still 'needs to discuss it' with ex Pete, but says he should trust her and know that she's be 'by Princess' side throughout'.
'He's got to trust me and know I'd never put her in a bad situation. I did stuff like this when I was younger,' she added.
The mum-of-five often shares pictures of her children on her social media pages, frequently referring to Princess as 'gorgeous' and 'my little beauty'
The news of Princess' new endeavour comes shortly after Katie was met with criticism for sharing pictures of her daughter on Instagram wearing heavy make up and copying her mum's poses for the camera.
She later admitted that she 'was in the wrong' for posting the images, telling her fellow Loose Women panellists, 'Princess sees how I pose. She thinks it's natural. These pictures were taken when we did panto at Christmas and she just saw her mum doing it.
'To me, it's innocent because she's copying her mum. But after I posted it, people were saying to me: "Oh my god, Katie, think about paedophiles!"
'And I thought, "Oh yeah, you're right". When you say it, you can see it.'
Fans criticised Katie for allowing Princess to pose in a full face of make up
Katie's now-husband Kieran Hayler told OK! that he wouldn't have been happy if the photo shared online had been of his own daughter with Katie, Bunny.
However, the pair say that they've spoken to Peter over the phone about the snap, and although he wasn't 'angry', he thought it was 'a bit too much'.
Would you let your child enter a beauty pageant? Do you think it's a bit of harmless fun or something you'd never consider? Let us know your thoughts in the comment box below.