The 31-year-old glamour model - who already has a range of equestrian clothes, perfumes, bed linen and underwear - is to launch an infants range in an effort to re-brand after a year of bad publicity following her split from ex-husband Peter Andre.
A source said close to the mother-of-three said: "Katie has wanted to design baby clothes for years.
"Working with a team of designers, she will initially launch KP Baby as a girls' range with loads of bright pinks and fuchsias - her favourite colour.
"Kate is determined to be really hands-on with the range and will get totally stuck into every aspect of the design process."
The range will include bright pink combat trousers and similarly coloured hoodies.
The source added to The Daily Mirror newspaper: "Kate is determined to re-brand herself in the wake of her recent troubles. She's excited."
In addition to the clothing range, Katie is also launching her own glossy magazine.
The source said: "It'll be a warts-and-all glossy mag, following Katie's every move."
BANG Showbiz