The as-yet-unnamed channel will include ITV's existing slate of kids' programmes, such as popular animation shows 'Angela Ballerina' and 'Engie Benjy', entertainment shows like 'Art Attack', as well as factual and pre-school programmes.
ITV will also expand its presence in the children's market through a raft of new programme acquisitions and commissions.
The channel will occupy the 6am to 6pm slot on the new ITV male-skewed channel ITV4, which is launching on November 1.
Estelle Hughes, editor of CiTV, will expand her existing role to take editorial responsibility for the new channel.
The move will see ITV begin to challenge the BBC in the digital children's TV market. The BBC has two children's channels: pre-school offering CBeebies; and its service for six- to 12-year-olds, CBBC.
Nigel Pickard, director of programmes for ITV, said: "This is a great opportunity for ITV to reinforce its position as a valued and trusted provider of children's programming in an increasingly competitive market and to bring ITV to a new generation of viewers."
Sales for the new channel will be handled by GMTV.
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