It will create a new brand, called X U, and encourage listeners to decide what content is aired between 10am and 4pm on Xfm's London, Manchester, Scotland and soon-to-be launched South Wales stations.
The changes, which will take place from 29 May, will see the scrapping of conventional DJs between 10am and 4pm, with listeners contributing content via an X U space on the Xfm websites. Listeners will be able to construct playlists from a database of songs available on the site. The broadcast playlists will then be decided by either listeners' votes or by Xfm producers.
Commercial minutage will not change, but Xfm claims the creation of X U will provide advertisers with greater levels of insight into its listeners.
Richard Mintz, the marketing director at Xfm, said: "There has never been such a direct link between the listener and a radio station."