George, 47, revealed the choice of romancing favourite You and I on US television this morning after weeks of speculation - and described Wills' future wife as a "cracker".
After laying down the track the ex-Wham! frontman- a close friend of Princess Di - returned to the studio to have another bash to "make it even more romantic".
The song will be free to download but George is encouraging fans to donate to Wills and Kate's charity fund which will share the proceeds among a range of good causes.
George told Piers Morgan's CNN show that Wonder has also waived the rights to the song until "way after the wedding".
George said he had heard via a mutual friend that the track has the seal of approval from Buckingham Palace.
He said he was "incredibly happy" for the couple.
"I am absolutely sure Diana would have loved the whole thing. I really hope she would have loved this track.
"I have a feeling she would have done."
Earlier, George told his Twitter followers: "It's going to break your heart!"
He added: "I want Will and Kate to know that this a genuine gift, not a promo exercise."
The singer, jailed last year for crashing while high, has insisted he isn't angling for a wedding invitation with the unique offering and isn't attending on April 29.
He said on Twitter the couple should be with "people they love, not dodgy ex-con pop stars".
George was handed an eight-week prison sentence last year after crashing his Land Rover while under the influence of cannabis.
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