"The civil wedding will take place at Kraljicina (Queen's) beach," the source, who requested anonymity, told AFP.
He added that the religious ceremony would take place two days later with only family and close friends invited.
Kraljicina is located close to Sveti Stefan islet, a luxury property in Montenegro bordered by forested hills where Djokovic and his guests are staying.
Local media had reported earlier this week that the 27-year-old, who won his second Wimbledon title on Sunday, would tie the knot with Ristic on Wednesday.
AFP reporters at the scene said Sveti Stefan and Kraljicina beach were closed off to the public to prevent possible intruders or paparazzi.
Security officers, dressed in civilian clothes, have been deployed in the area since Tuesday to ensure that the privacy sought by Djokovic is respected.
Tourists can freely access two beaches facing the islet but they are not allowed to cross the bridge to sit or walk the paths through a pine forest leading to the Kraljicina beach, according to AFP journalists at the scene.
They are also forbidden from bringing any cameras or mobile phones to the islet, connected with the mainland by a stony strip.
Media reports said 140 people had been invited to the wedding, including Djokovic's coaches Boris Becker and Marjan Vajda, as well as fellow tennis players Maria Sharapova and Andy Murray.
The bash will reportedly cost some 500,000 euros ($680,000).
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