The station is currently online only, but is bidding for a share of the second digital radio multiplex.
Nathalie Schwarz, Channel 4's director of radio, said the channel was strengthening its roots in new technology.
"We want to reach new audiences in different ways and put listener interaction at the heart of everything we do," she said.
"We're not just slapping our brand on something, but are playing a role for that community - we'll be digitally convergent in the virtual world."
Channel 4 Radio's presence in Second Life will bring its voice to the 1.2 million people who currently play the virtual world game.
The radio station will be accessible via Second Life's internal broadcast network, www.virtuallife.tv on portable radios that can be carried everywhere by the virtual population. The service will include a dedicated Second Life Radio Show reporting on the day-to-day goings-on and developments in the online world - the first community voice for Second Life.
Schwarz hailed Second Life as "the next YouTube" and said she believed Channel 4 Radio's decision to join the phenomenon at this stage was crucial.
Channel 4 Radio currently broadcasts a range of programmes on www.channel4radio.com, including the return of The Tube last Friday after a break of 19 years and the best of unsigned new music with Slashmusic, hosted by Tom Ravenscroft, John Peel's son.
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