The channel, which will be transmitted free-to-air on the Sky Digital platform, will showcase theatre, shopping and tourist information about London. It will seek to attract sponsorship revenue for some of its programming strands and is due to launch in the early summer.
The organisation has appointed the digital TV company enteraction TV to run and produce the 24-hours-a-day venture. OMD UK is also acting as a consultant.
David Campbell, the chief executive of Visit London, said: "We want to produce ground-breaking communications that will be of equal interest to Londoners and visitors alike."