The show, which will run for 15 weeks, will feature live musical performances as well as footage shot in the backstage area through hidden microphones and remote cameras.
It will be shown on Channel 4's T4 strand during the weekend, starting in April, as well as a late night repeat on 4Music.
Out-takes and tracks will be sold via the Nokia Music Store and made available on Nokia mobiles.
Whizz Kid Entertainment will produce the show, and its digital arm, Tough Cookie, will produce the additional content to be sold by Nokia.
The deal was brokered by Whizz Kid chief executive Malcolm Gerrie, and media agency MediaCom, along with Nokia's marketing director Will Harris. Nokia has previously funded a show in 2003 that ran on Channel 4, called 'Fashion House'.
Harris said: "The fusion of reality TV, live music and mobile promises to be a heady mix. This is a fascinating project and we are very excited to be associated with it."
There are plans to repackage the show and sell it to other territories that are key for Nokia sales.
A pilot episode of 'The Green Room' ran last year with acts Girls Aloud and The Feeling, drawing over 600,000 viewers.
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