I thought that what I would like more than anything this year is to be able to give something back -- to pass on the gift that I had been given," the 49-year-old said on her website in advance of the announcement on Friday.
Her debut album, "I Dreamed a Dream", shot to number one in more than 20 countries, and, with nine million copies sold worldwide, was one of last year's biggest hits.
Her follow-up will be called "The Gift".
The competition, to be run on her official website www.susanboylemusic.com, will be open from July 9-23, and the winner will be annonced on July 26.
Boyle has invited entrants to upload videos of themselves singing Christmas carol "Silent Night."
"There are a lot of people out there who wouldn't have the confidence or perhaps the means to enter a big competition like 'Britain's Got Talent'," Boyle said of the programme that made her an international star.
"So this might be a lot less daunting for some people as they can record the song in the privacy of their own home. I'm hoping that people who have always wanted to sing will give it a try. I wish you all good luck."
Boyle's rendition of "I Dreamed a Dream" from the musical "Les Miserables" in April last year has been downloaded hundreds of millions of times on the YouTube video sharing site.
The church volunteer from a small town in Scotland surprised audiences and the judging panel with the power of her voice, and within days the world's media was camping outside her modest home and turning her into a household name.
(Reporting by Mike Collett-White, editing by Paul Casciato)
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