The site is adjacent to the Alma Tunnel where the accident occurred.
The plaza is currently named after opera singer Maria Callas. A city hall official said Thursday that the city council will vote next month on a measure to rename it after Diana. The city noted that Callas already has a nearby avenue named after her, and that the city wants to honor Diana for her humanitarian work.
The 36-year-old princess, her boyfriend and driver died after their Mercedes crashed into a concrete pillar in the tunnel.