It will not be a stand-alone title or a replacement for Stella, as reports have speculated.
Dave King, executive director, said: "When we were in Milan [for fashion week] it became apparent that there is a demand from high-end fashion advertisers for this type of publication that can tap into the style and affluence of The Sunday Telegraph. It is commercially driven, but will be editorially strong.
"There will be some crossover with Stella."
The perfect-bound magazine will offer "an eclectic mix of sophisticated fashion coverage with engaging, thought-provoking editorial" and will "celebrate fashion, rather than simply describing it", a spokesman for the group said.
The magazine, to be produced in partnership with Show Media, will pool the resources of the two Telegraph newspapers' fashion teams. Peter Howarth, managing director of Show Media and formerly of GQ, Arena and Esquire, will be editor, and the fashion director will be Daniella Agnelli, fashion director of The Telegraph Magazine.
Contract publisher Show Media already produces glossy lifestyle and fashion magazine Style Journal in partnership with The Wall Street Journal Europe.
The launch will be commercially led by Toby Moore, fashion, luxury and beauty advertising director for Telegraph Media Group and former publisher of Marie Claire.
Last year, the Telegraph Media Group launched a biannual Food & Drink magazine at Christmas.
At 64 pages, with advertisers including Clinique Skin Supplies for Men, Omega Watches and Dunhill, it was the largest launch issue in a recent string of Telegraph supplements, including a 56-page Men's Style special last April and an 88-page Fashion special last March.
The Telegraph Media Group publishes The Daily Telegraph, The Sunday Telegraph and The Weekly Telegraph and produces the website telegraph.co.uk.
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