Front Line: A Year of Journalism & Conflict will look at three of the major stories of this year - the Arab Spring (with a focus on the revolution in Egypt), the conflict in Libya, and the London riots in August.
The multi-media exhibition, launching on January 12, 2012 at Somerset House, will offer a "unique insight" into these momentous events via Sky News' coverage.
Walls of the gallery will feature stills taken from Sky News footage and original video will be shown on big screens, including live reports and packages, along with interviews with journalists, editors and producers. Visitors will be able to browse timelines, maps and photo galleries on a series of iPads.
A specially-commissioned installation will focus on coverage of the death of Colonel Gaddafi in Libya, highlighting the "issues facing news organisations in authenticating and broadcasting often deeply disturbing images to the public".
Sky News head John Ryley said: "This year has been an exceptional one for news. The exhibition will highlight the challenges of reporting from conflict zones, both home and abroad, and how vital a reporter's role is in revealing the truth."
Somerset House Trust director Gwyn Miles added: 'We aim to make the programme at Somerset House reflect what is happening in the world today.
"We are thrilled to be working with Sky News on this exhibition which will go behind the scenes of some of the past year's most dramatic news stories - from how news is captured on the front line to how it is presented to the wider public."
Front Line: A Year of Journalism & Conflict will run from January 12 to February 5 in Somerset House's Embankment Galleries. It will be free to the public.
Also today, former Independent editor Simon Kelner launched a new charity for the promotion of "free and fair" journalism across the world.