The blog will go live from Sunday February 27 at Observer.co.uk/blog
It aims to take a "behind the scenes approach", opening up and explaining decisions behind news stories, as well as adding information to stories that already appear in the paper and giving readers the opportunity to interact and even influence decision-making.
The blog will be written by The Observer's website editor and leader writer Rafael Behr, as well as selected Observer journalists.
Roger Alton, editor of The Observer, said: "We are breaking new ground in an effort to increase editorial transparency and encourage debate and interaction with our readers.
"Launching 'blog' is a great way to open up a window into the newspaper and to extend The Observer's distinct identity into a daily online presence."
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