The contemporary project, from Michael Hirst and Morgan O'Sullivan, is being eyed for an early 2011 premiere on the cable network.
The series, which will be shot in Ireland, is to be based on Thomas Malory's 15th century book Le Morte d'Arthur.
"The story of Arthur isn't history, it's mythology, and Camelot isn't a place but an idea of hope that has resonated intensely at different times throughout history," said Starz's Chris Albrecht.
"The creative team has envisioned a highly entertaining and distinctly original TV programme that fits in perfectly with our lineup, coming on the heels of our successful original series Spartacus: Blood and Sand and the returning comedy Party Down, along with our recent acquisition of the event series based on Ken Follett's The Pillars of the Earth. "
> Starz hands 'Spartacus' early renewal