The couple have their hearts set on hiring a private beach resort for a week on the island of Isla Mujeres, eight miles off the coast of Cancun, Mexico.
A source said: "This is the perfect location for Sienna to have her big day. This particular resort is literally in the middle of nowhere, so the only people to witness their wedding will be close friends and family.
"They fell in love with Mexico the first time they went there - so it makes sense for her to choose it as a location for her wedding."
The private resort where they plan to wed, complete with a large ten bedroom villa, boat ramp and several guest houses is believed to be owned by a close pal who she met on set of a recent film.
Due to its location, much of the food for the wedding is being shipped in from Cancun's mainland. After the ceremony, guests will then be taken back to the villa to feast on traditional Mexican dishes and knock back Mexico's best tequilas.
The couple became fond of the Latin American city during their romantic holiday last year.
And it seems it remains their first choice as the couple were spotted frolicking on the beach only.
Check out more pictures of Rhys Ifans, Sienna Miller and her butt in Mexico on vacation under here.
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