Designed for girls aged as young as 11, the range will include tops and accessories, as well as denim, and will go on sale next spring.
The sub-brand is one of a number of ranges unveiled by Levi's at its 150th anniversary celebration last week.
Lady Levi's aims to boost the company's position in the competitive women's denim market. It comes as Levi's segments its range to appeal to different audiences to secure its market-leading position.
Rachel Johnson, marketing director for Northern Europe, said: "We are looking very closely at every age, gender and retail group."
Levi's next major marketing campaign will attempt to revive interest in its classic 501 jeans. Press and poster ads will break this autumn, followed by a TV campaign through Bartle Bogle Hegarty next spring. Other range launches will include Levi's 100 per cent range of jeans, which boasts a 'minimalist' design.
Levi's is also introducing discount offering Signature to Europe, although it will be marketed as a separate brand, similar to Dockers, and have its own dedicated marketing team.
According to Mintel's latest report on the jeans market, Levi's is the leading denim brand in the UK, with a 15% market share. Sales have increased from £134m in 2000 to £167m last year.
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