The new product combines Vegemite and cream cheese and was created from a census asking Australians how they ate their Vegemite, which has been almost a dietary staple in the country since it was launched more than 80 years ago.
Australians will now be asked to come up with a name for the new product.
According to Melbourne-based newspaper The Age, the new spread looks and smells like Vegemite but has a smoother consistency and is easier to spread. The exact recipe is being kept secret but it does contain Vegemite and cream cheese.
When the first jars appear next month, they will carry a label reading 'Name Me'. Names suggested so far include 'Verygoodmate', 'Chuttermite' and 'Won'tmakeacenteMite'.
In the census conducted by Vegemite's owner Kraft Foods, a number of Australians said their favourite way of enjoying the spread was with cream cheese, for an experience dubbed the 'Philly-Mite'. Philly refers to Philadelphia Cream Cheese - another brand owned by Kraft Foods.
Simon Talbot, head of corporate affairs at Kraft, said: "With such a well-loved, iconic brand we wouldn't create something using the Vegemite name unless we were absolutely sure Australians would love it."
It is the latest example of food brands turning to the public to come up with new flavours or names. Walkers Crisps recently asked the UK public to suggest new flavours and vote for their favourite, and in 2002 consumers were asked to choose a new colour of M&M in a global, online poll.
Much like its UK counterpart, Marmite, many would argue that Vegemite is an acquired taste. However Kraft says that 70% of Australian households have a jar of the yeast-extract spread in their cupboard.