The cruise line will aim to compete with other industry giants, such as Carnival Corporation and Royal Caribbean Cruises Ltd.
The project is still at an early stage, but Virgin executives and advisers have already held detailed talks about how to finance the project.
They are trying to raise an estimated $1bn to acquire the first fleet of vessels. They are also looking to raise a further $700m of equity by selling stakes in the cruise line to outside investors.
Sir Richard and Josh Bayliss, chief executive of Virgin Management, are understood to believe the global cruises sector possesses many of the same characteristics which have led Virgin to build a significant presence in sectors such as aviation, rail and mobile telecoms.
"Cruises is a classic Virgin market, dominated by two or three players and where the product needs to be refreshed," an insider told Sky News.
Virgin Cruises is expected to be headquartered in the US, which is the world's biggest cruise market.