The project, which will take the state-owned CSC Jinling Shipyard Co Ltd in Nanjing, Jiangsu province, three years to complete, is financed by Australian billionaire Clive Palmer, China Daily reported.
The 173-foot tall Titanic II will make its maiden voyage from England to the United States in 2016 with 900 crew members and 2,400 passengers, officials said.
"The world's leading shipyards and ship-design companies, including Finland's Deltamarin, have been invited to join the construction work of Titanic II," said Li Wenbao, spokesman for Jinling. "The liner will be equipped with advanced technologies, including the latest life-saving and communications systems, to meet the requirements of modern navigation."
Li said the shipyard has a contract with Blue Star Line, a wholly owned subsidiary of a mineralogy company owned by Palmer.
The original Titanic sank off Newfoundland after hitting an iceberg April 15, 1912, on its maiden voyage, killing 1,523 people.