The pop sensations, who have sold over 17m records globally, will launch the scent as the first in a collection of One Direction fragrances.
Bandmember Niall Horan, of Mullingar, said: "We have been discussing making a fragrance for our fans for quite a while, so we're really excited to finally have this opportunity. We've been working away on this and we're very proud of the way it has turned out -- we really can't wait to hear what our fans think."
The boys' latest venture will see them joining the likes of Britney Spears, Jennifer Lopez and fellow X Factor success Cher Lloyd, all of whom have signature perfumes.
Their manager Will Bloomfield said: "The band are incredibly passionate about this project and have been closely involved in the creation of the scent, the packaging and bottle design and the name itself. The name of the fragrance is still confidential, but more news will be revealed in early 2013."
One Direction, nicknamed 1D by fans, are enjoying huge fame as their album Take Me Home reached number one in 36 countries, making it their second number one album this year.
They have won a BRIT Award, three Teen Choice awards, three EMAs and three MTV Video Music Awards all this year.
Their videos have been watched nearly 700m times on VEVO, they have over 11m followers on Facebook and over 8m Twitter followers.