The seven-time MotoGP champion's VR46 company has struck a deal with Sky Italia, which will be the new team's principal sponsor.
The team will race KTM machinery and has already agreed to run Romano Fenati, who scored his breakthrough win in the series last year at Jerez. KTM bikes have won every race so far in 2013.
Rossi said the objective of his new team is to help young promote Italian riders through MotoGP's junior ranks.
"We have joined forces with Sky in order to give the Italian riders the opportunity to be competitive and reach the highest levels," Rossi explained.
Teams wishing to compete in either Moto2 or Moto3 next year had to lodge their entry applications at the San Marino Grand Prix.
The next selection meeting will be at the Malaysian GP on October 13.
- Sports & Recreation
- Romano Fenati
- Sky Italia