The album is called 'The Xfm Debut Sessions' and features recordings of live performances in the Xfm studios and from gigs sponsored by the GCap-owned radio station.
Artists such as Kate Nash, Jack Penate and Bat for Lashes appear on the 'Class of 2007' CD. The 'Best of a Decade' CD carries recordings from bands such as Kaiser Chiefs, Razorlight, The Libertines and Doves.
It will be released on January 14 and promoted across Xfm's network of stations in London, Manchester, Wales and Scotland, as well as online and in print advertising.
Mike Walsh, head of music at Xfm, said: "All of our favourite Xfm artists have either been in session or recorded gigs with us and 2007 was a great year for it. Xfm was the first to play Kate Nash, Jamie T and The View, all here on CD1.
"On the second CD we are proud to feature incendiary performances from the likes of Kasabian and Bloc Party, bands that have made Xfm what it is over the years."