James Palumbo, founder of Ministry of Sound, is said to be looking for an established media partner in the new venture and is understood to have entered into talks with Capital Radio, Scottish Media Group and Kelvin MacKenzie's Wireless Group, which owns the TalkSport station.
One option he is believed to be looking at is a licensing deal. This would see Ministry sell the rights to run the station under its digital radio licence.
Ministry was last week valued at £120m, following a £24m deal with venture capital group 3i. Palumbo may also use some of this windfall to invest in existing radio stations.
Since its creation in 1991, Palumbo, son of property developer Lord Palumbo, along with marketing director James Bethell, son of MEP Lord Bethell, has overseen the rise of Ministry from a nightclub in a former bus depot in a run-down area of Elephant & Castle into one of the strongest media brands in the UK.
Ministry reported revenues of £80m last year, 80% of which came from its dance music record label. The company already houses a 24-hour digital radio station on its website and publishes the monthly dance magazine Ministry.