X Factor boss Simon is making a move into electronic music with the new show, which will initially launch in the US as an online competition.
Ultimate DJ, which has been developed by Syco, SFX Entertainment and T-Mobile US, has been described as a "pioneering television show revolving around the booming electronic music culture". The show aims to showcase and cultivate "fresh new EMC DJ/producer talent and creative event production skills."
In a statement, Simon said: "We have been developing this concept for a while but our partnership with SFX has been a real game-changer for this format.
"It made complete sense for us to collaborate with SFX with their access to the best up-and-coming DJs and their great marketing platform to build new DJ talent. And I'm delighted to have T-Mobile on board with their brilliant vision and innovation."
Launching initially online, Ultimate DJ will feature producer challenges where DJs will be invited to submit recordings, which fans will be able to vote on via social media. The competition will then move on to live challenges and performances in SFX event venues.
Robert FX Sillerman, Chairman and CEO of SFX Entertainment, said: "Bringing EMC to the world is our goal and building a TV franchise in the USA is a key part of that strategy. It's always exciting to work with Simon Cowell, and the creative power of the Syco organisation is undisputed. They are the perfect partners for our vision."
Details on Ultimate DJ's launch date are yet to be released.
Elsewhere, it was announced this week that X Factor-inspired musical I Can't Sing will close after just two months. I Can't Sing was co-written by Harry Hill and opened with the approval of Simon.
Got an iPad or iPhone? Reveal Mag has been especially designed to fit!