Few details are known about Farrell's proposed series other than it would likely differ from music talent competitions by solely featuring live performances by popular music acts, reports Entertainment Weekly.
The musician is apparently attempting to capitalise on the recent record ratings earned by the Grammys and the Country Music Awards.
Farrell has not yet commented on these latest reports.
His band Jane's Addiction performed at Lollapalooza's after-show in Chicago last week. Farrell launched the music festival in 1991.
The most recent Lollapalooza featured Black Sabbath, The Black Keys, Florence + the Machine and Franz Ferdinand.
Watch the Jane's Addiction 'Been Caught Stealing' music video below: