The initiative is being led by Saatchis' chairman and chief executive, Lee Daley, but details of the project are under wraps until early September.
The operation is expected to work with Saatchis' network offices in order to handle content for global clients.
Branded entertainment has attracted growing interest from ad agencies in recent years, with various above-the-line agencies setting up content divisions.
WCRS launched Huge last July, while Miles Calcraft Briginshaw Duffy opened Amplified, with the former Carlton TV chief executive Martin Bowley at the helm, last September.
DDB London tied up with the content agency Stream to launch DDB Stream earlier this year. And TBWA\London has worked with Stream since the content agnency was set up in 2001.
Saatchis declined to comment on the new division.