The department will be run by Colin Hickson, formerly the agency's head of TV, and Brad Willis, formerly its head of traffic.
The restructure has been instigated to create a multi-skilled production facility that can offer faster solutions across traditional media, interactive or other channels.
Neil Simpson, the Publicis chief executive, said: "In the past 12 months, we've produced events, iPhone apps and computer games.
"Making the product is just as important as the idea now. Production departments need super-producers who can be involved during the entire process."
At the same time, the agency has hired Jason Cobbold, formerly a business director at Bartle Bogle Hegarty, to jointly head its account handling department alongside Melissa Hopkins, who has been promoted from account director.
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