Edited by Annalena McAfee, it will cover books, classical music and theatre, offering news, interviews, reviews, listings and sales data.
McAfee, who edited the Saturday Review, was previously arts and books editor of The Financial Times. Before that she was arts editor of the Evening Standard.
Review's assistant editor will be Susanna Rustin, formerly arts and books sub-editor at the FT. Literary editor is Claire Armitstead. Justine Jordan is the new commissioning editor, but will continue to spend two days a week on BooksUnlimited, The Guardian's online channel.
McAfee said: 'The link to the website is very important. It gives us the opportunity to run extracts (of books).'
McAfee said the Saturday paper offered a different read. 'There is tremendously broad coverage of arts in The Guardian throughout the week. We are not ashamed of the higher ground. We are aiming for the authority and reach of the Times Literary Supplement but with a friendlier and more democratic style,' she added.
A column by Nicholas Clee, editor of trade journal The Bookseller, reflects reader interest in an insider's view of publishing, McAfee said: 'Rights and movie deals often make their way onto the general news pages.'
Other writers will include Martin Amis and AS Byatt.
The extensive profiles at the centre of the Saturday Review will continue, she said: 'We have covered musicians, politicians and sportsmen as well as literary figures. They will be ruled in if they are pegged to books this time round.'
In another change to the broadsheet's Saturday package, this weekend The Editor, which is The Guardian's weekly digest of world and domestic news and comment, will grow from A4 size to tabloid format.