The Dancing On Ice finalist told The Mirror that the new group would be called Danger Minx, but added that Celebrity Big Brother star Michelle Heaton would not be joining the band.
Taylor said: "It's an electropop group which means it's going to be pretty uptempo stuff, very dancey...the sort of thing you hear in clubs.
"Michelle's not involved. She's concentrating on her television presenting career in Ireland now."
Taylor, Young and Heaton were among the founding members of Popstars rejects Liberty X, who released three albums before they split in 2007.