The trials start in five key areas in the West Midlands; Birmingham, Coventry, Worcestershire, Staffordshire and Shropshire from September this year.
The scheme will use the latest technology to create local TV news on broadband, digital satellite, digital cable and potentially on mobile phones.
Thompson said that the TV news service will be similar to local radio news.
"They will be as local as our radio services, serving individual cities, conurbations and counties," he said.
The trial will initially create up to 20 new journalism jobs for the West Midlands and potentially 1,200 if the scheme is successful and expanded across in the UK.
BBC Nations and Regions has been working with the latest video camera technology and editing systems for the past three years to enable more journalists to go out on the road and cover stories as and when they happen.
Thompson added: "Our aim is to create a new model of local television, centred on news, information and community partnerships and we will work with public, private and voiluntary sector partners to build and sustain the pilot service."
Once the nine-month pilot scheme is completed, it will be subject to a rigorous appraisal. A decision is likely to be made on whether to launch similar services by the end of 2006.
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