The couple got engaged in April and are said to have looked at venues for their nuptials in the Louisiana city, that's famous for its nightlife and vibrant live-music scene.
The actress' 62-year-old dad, singer Lenny Kravitz, bought his first home there.
"Harry and Zoe might have a string of celebrity friends and a Hollywood lifestyle, but their wedding won't be like that," a source told The Sun newspaper.
"They're a cool couple and want something unique.
"Zoe's family ties to New Orleans, plus the town's musical history, is making it a frontrunner, and they've told pals that they're looking at options for holding their big day there."
However, in May, a separate source told People that Kravitz, 37, and 32-year-old Styles - who reportedly popped the question with an almost $US1 million ($A1.5 million) diamond ring - are not thinking about the wedding yet.
After the Big Little Lies star attended the recent opening night of Harry's Together Together tour at the Johan Cruyff Arena in Amsterdam, the insider said: "She was excited to support him at the opening night in Amsterdam. She's into his music and loves seeing him perform live.
"They're just having a great time together. She's happy, but pretty low-key about the engagement. She isn't talking about a wedding at all."
In March, Styles - who has been romantically linked with Kravitz since August 2025 and has been spotted with The Batman star in Rome, Italy, London, and New York - outlined his five-year plan to get married and start a family.
"I think I had a real honest conversation with myself about, 'Okay, in five years, what do I want my life to look like?', he told DJ Zane Lowe, 52, on Apple Music.
"And then, 'How do I make changes to aim at that?' I don't want to be the guy who's on his own but was like, 'Oh, I really did it.'
"I want to be fulfilled, and I want to be in great relationships with people. I want to have great friendships with people. I want a family. I want these things.
"It just allowed me to go like, 'Okay, what do I have to do to create space to allow these things to happen?' I can't just expect them to just happen to me."