A group of unknown investors is thought to be gearing up to launch the London Weekly, which would be distributed on Fridays and Saturdays.
A media pack forecasts 250,000 copies of the title will be distributed twice weekly outside rail and tube stations.
The only evening newspaper now distributed daily for free in the capital is the London Evening Standard, after it dropped its cover price and raised its circulation last month. The Metro is distributed every week day morning.
It is not clear when the new weekly paper will launch. According to reports publisher Global Publishing Group will launch a website, online radio station and TV channel to support the title.
The media pack says the paper will cover entertainment, light politics, music and sports. With around 30% of the newspaper's content generated by its readers.