May 19, 2001 3:04 AM

A lineup of entertainment heavyweights has joined forces to bring Celine Dion to Caesars Palace for an exclusive three-year engagement at the new Colosseum theater.

Announcement of the long-rumored deal was made Thursday by Sony Music, Dion's record label; Franco Dragone, creator of "Quidam," "O" and "Mystere," who will direct the show; CDA Productions Inc., owned by Dion and her husband, Rene Angelil; Los Angeles-based Concerts West, which will present the show; and Park Place Entertainment, parent company of Caesars Palace.

Park Place President and CEO Thomas Gallagher called the assemblage "an entertainment Dream Team."

"We have had a long and wonderful relationship with Celine and Rene," Gallagher said in a statement released Thursday. "We are delighted to join them in this all-star coalition to create an extraordinary show that will combine the best in music and the best in theater."

The 4,000-seat Colosseum, designed to resemble the ancient Roman Coliseum, is being constructed specifically for the show. The $65 million to $70 million theater is scheduled for completion in early 2003.