The publisher said it was looking to hire qualified bloggers who could cover "community news and report on local developments".
Emily Bell, director of digital development at Guardian News & Media, told : "Guardian Local is a small-scale experimental approach to local newsgathering. We are focusing on three politically engaged cities and we expect to launch in early 2010."
GN&M joins a number of national publishers who are looking to tap into the hyperlocal market.
Mirror Group Newspapers has looked to bolster its regional offering with the launch of more than 100 hyper-local websites which serve specific postcodes, with community and user generated content.
In July this year, in the southwest, with plans to launch 50 regional news sites where people can write and upload their own content and discuss issues relevant to their district.