The 48-year-old singer said in a statement the combined label will be named Show Dog-Universal and he will serve as the label's principle, The (Nashville) Tennessean reported Friday.
"Show Dog-Universal will still have the feeling of being an independent label with strong and personal relationships with all our artists," Keith said. "That is what Show Dog Nashville and Universal South have always been about, but combine the two labels and you have a powerhouse with more staff and better opportunities for our artists."
Under the Show Dog Nashville label he founded in 2005, Keith worked with musical acts such as Mac McAnally and the Trailer Choir.
The Tennessean said the presidential post at Show Dog-Universal will be held by Mark Wright.