Industry sources say the new division, which has been given the working title M&C Lux, will be a media-neutral offering, comprising traditional advertising, public relations and event marketing services.
The new outfit does not yet have a confirmed management team, and is not expected to include the M&C Saatchi brand in its name when it launches in March.
No client list has yet been confirmed. M&C Saatchi handles luxury brands including the bank Coutts & Co through its NatWest business, the clothing brand Thomas Pink and the Krug Champagne account.
Agency luxury and fashion arms have had muted success in the UK in the past. In 2002, Leo Burnett took a minority stake in Made, a fashion-focused unit that was run by the Swedish creative Joakim Jonason. That business ceased trading in 2004.