Network Ten's Everybody Dance Now will also feature Jason Derulo. The pair will mentor contestants throughout the competition.
Meanwhile, former Australia's Next Top Model host Sarah Murdoch will present the show, which is due to debut later this year.
"We are thrilled about Everybody Dance Now and our return to big event television," said David Mott, Ten's chief programming officer, according to Rap-Up.
"Dynamic, creative, and inspiring, Sarah, Jason and Kelly are the perfect fit for this fantastic new format - only good things lie ahead."
Former So You Think You Can Dance choreographer Jason Gilkison will serve as the show's creative director.
Everybody Dance Now has no age limit and no judges, with the audience alone deciding which of the six acts featured in each episode deserves a $10,000 prize and place in the final. The eventual winner gets $250,000.
Rowland, who is also scheduled to shoot a pilot for a BET sitcom later this summer, quit The X Factor UK in April due to "global commitments".