The former Sex Pistols singer said that he will use money raised from the band's reunion tour to fund the new LP, reports Contact Music.
Lydon revealed that PiL would enter the recording studio once they complete their current American tour, which kicked off in Los Angeles on Tuesday.
The 54-year-old said that he was displeased that the band has not received any financial backing to record a new album.
"The lack of record company involvement or interest has been utterly appalling," he said.
"But I must say that comes as no surprise to me, because when I first started PiL, right from its outset, the record company was amazingly distant and quite negative about it all. Public Image for me has always been a financial struggle to make ends meet."