The new spin-off will see acts audition to form part of a girl group and boy band.
Nicole and Simon will appear as permanent judges, joined by various industry experts, according to The Sun newspaper.
It means Louis Walsh will once again be leaving the show, having made a return for the Celebrity X Factor series which concludes on Saturday.
A source shared: “Simon and Nicole are already winding each other up about who’ll pick the best band and the judges won’t hold back with their opinions during the auditions.
“It will be like a throwback to the old days where they’ll say what they really think — even if it comes across as harsh. There won’t be any time for wasters."
The X Factor: The Band will air over four shows across one week in December.
The series will begin on Monday, December 9 at 8:30PM on ITV.
There will then be further episodes in the week on Wednesday, December 11 and Friday, December 13 also at 8:30PM. All episodes run for 90 minutes.
A fourth and live final episode will air on Sunday, December 15 at 8PM.
Teasing the show earlier this year, Simon explained: "Very simply... we are going to try to find either the biggest boy group in the world, or the biggest girl group in the world...
"Right now K-POP you could argue, is ruling the world. Now it's time for UK-POP."
Dermot O'Leary will host the new series, which replaces a planned All Stars spin-off.
For now, The X Factor: Celebrity currently continues on ITV on Saturday nights with the live final this weekend.
You can catch up on the series online via ITV Hub.