The 87-year-old right-wing politician made the announcement during a meeting with his supporters at a restaurant in Marseille.
"You will not be orphans. We can act in a similar way to the FN, even if we are not part of it," Jean-Marie was quoted by Reuters as saying.
According to media reports, if he manages to recruit the former party members in his new party, it will prod the FN to decide on whether to allow dual membership.
Jean-Marie Le Pen was expelled from the FN in August 2015 after he made a number of statements that his daughter Marine Le Pen slammed as unacceptable; she demanded that he should be removed him from the office.
Last year, Jean-Marie Le Pen defended his previous comments on how the WWII gas chambers, in which hundreds of thousands of people were killed, were just a "detail" of history. Separately, he referred to the current French Prime Minister Manuel Valls, a native of Spain, as a "migrant".
Jean-Marie Le Pen founded the FN in 1972, with his daughter Marine succeeding him as leader in 2011. Commenting on his decision to launch a new party, she reportedly dismissed the move.
"Everyone is free outside the Front National to create any group he wants. This poses no problem. He does what he wants, he is a free man," she was quoted by media reports as saying.
