News International chief executive Tom Mockridge revealed the news to staff on Sunday evening (February 19).
> 'The Sun on Sunday': Read Rupert Murdoch's email to staff in full
"News Corporation has made clear its determination to sort out what has gone wrong in the past and we are fundamentally changing how we operate as a business," Mockridge wrote.
"The commitment of News Corporation to invest in a new edition is the strongest possible message of support we could wish for."
"Giving our readers what they want has remained our mantra - and that is why you have made us the most popular paper in the English language. Now we are answering your clamour for a Sunday edition of the nation's favourite paper," an introduction in this morning's edition of The Sun read.
The newspaper's editor Dominic Mohan described the forthcoming launch as "a truly historic moment in newspaper publishing".
> Five 'Sun' journalists arrested over police payments
Murdoch also revealed on Twitter that News Corporation's share price had risen by 60 cents since last week's announcement, adding that it was the highest rise of 2012 so far for the company.
The Sun on Sunday replaces News International's long-running News of the World, which was closed in July last year following phone hacking allegations made against the title.
The Metropolitan Police launched two separate investigations into phone hacking and alleged media payments to police as a result of the revelations, while Lord Justice Leveson's ongoing judicial inquiry is investigating press standards, speaking to witnesses including journalists, police officers, public figures and alleged victims of phone hacking or press intrusion.
> 'The Sun' staff ready human rights challenge to News Corporation body