The paper is being launched by a group of newspaper executives led by Nick Thomson, a former circulation director at News International.
According to the Observer, the paper is looking to sell around 150,000 copies initially, which it is hoped will swell to 500,000.
The paper has already hired advertising and a skeleton editorial staff and will operate out of headquarters in the North of England.
The paper is taking the same name as that of the Sunday edition of Northern Ireland's Belfast Telegraph, which is also called the Sunday Life.
As well working at Sunday Times publisher News International, Thomson also worked on the launch of Sunday Business and Sport First.
Working with Thomson are Charles Gardner from Johnston Press and Cleland Thom, a former journalist who heads a consultancy advising on the launch of Sunday Life.
The paper will be the first Sunday title to launch since Richard Desmond successful rolled out a Sunday version of the Daily Star in September last year.
Prior to that, Sunday Business launched in 1996 by Tom Rubython but had to be rescued by the Barclay brothers after failing to make money. The Planet on Sunday, a tabloid with a focus on environmental issues, also launched and closed that year.
However, there have been notable failures in the crowded tough Sunday market including the up-market Sunday Correspondent and before that there was the left-of-centre tabloid News on Sunday, which was backed by trades unions.
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