The W-League will expand to nine teams next season with the addition of Melbourne City.Football Federation Australia and the club announced the move on Wednesday, with City appointing former Melbourne Victory W-League coach Joe Montemurro to coach the club in its inaugural season.
The women's side will be based alongside the A-League club at the City Football Academy in Melbourne's north, and will train on the La Trobe University pitches newly vacated by the men's team.
Melbourne City chief executive Scott Munn said it was always the club's ambition to add a women's side.
"This is a very exciting moment for Melbourne City FC," he said.
"Increasing women's participation in football is vital for the game's growth in the future and we are looking forward to our season commencing later this year."
Montemurro has four months to build a side to challenge reigning champions Canberra United and the rest of the league before the W-League's expected kick-off in September.
The league is without a broadcaster after ABC television ceased its support of the W-League due to budget cuts.
The cream of the W-League's talent will head to Canada later this month, representing Australia in the FIFA Women's World Cup.
The Matildas kick off their campaign on June 8 against the United States of America.