The Los Angeles Times reported that the 62-year-old musician, who along with trumpet player Cynthia Robinson survived the implosion of the original band, has reformed the "Family Affair" with two of his sisters and his daughter, Lisa.
While three of his family members will join Robinson and seven other young musicians in the reformed band, Stone is not part of its lineup but he said he will help with the band's material.
"I've been writing songs, new songs," Stone told the Times. "Some are on tape, some on paper, and some on tape and paper."
So instead it will be Stone's youngest sister, Vet, who will lead the band with her older sister Rose when the new group performs Saturday at the House of Blues in Anaheim, Calif.
With Stone tabbing the new Family Stone band as the only group authorized to perform his former group's hits, the show should offer the popular music Sly and the Family Stone created in the 1960s and '70s.