The first issue is expected to go on sale in late spring. While the title will replace Ministry, sources said the new version will bear no resemblance to the original, which was published in-house and positioned as a global magazine about youth culture rather than just a 'clubbing bible'.
Conde Nast has appointed Imogen Aylen, formerly managing editor of Canary Wharf title Canary, as managing editor. Aylen said the magazine was still likely to be called Ministry, though no final decision has been made.
While the design is also still to be finalised, the publishers are believed to be considering using the famous MoS logo as the masthead.
The new title is part of a refocusing of strategy by MoS, under the direction of creative director and managing director of its newly-created 'brand group', Mark Rodol. Ambitious plans to create a massive media empire, with a network of radio stations at the centre, have now been put on ice following the company's decision to shelve its proposed public flotation.
Instead, MoS is returning to its roots, and concentrating on the products and services at the heart of its brand - youth culture and music compilations.
The magazine will be a key marketing tool for the company.
MoS also has joint ventures in the holidays and hi-fi hardware markets, and the magazine will cross-promote those products.
The deal represents a new market for Conde Nast, renowned for upmarket glossies such as Vogue, Tatler, Vanity Fair, GQ and Glamour.
Its contract publishing division produces two other newsstand titles - luxury lifestyle magazine Gold, and Tate magazine for the Tate Gallery.
MoS's decision to close its own publishing department and outsource its magazine is understood to be driven by Conde Nast's ability to secure large advertising deals for its titles.