Held on land off the Military Road, opposite Albemarle Barracks, the event is being planned by Apollo Entertainment Limited and could take place in August.
Created in July by directors Dale Mason, of Heddon on the Wall, and Michael King, from Durham, the company has already approached Horsley Parish Council where Mr Mason outlined the proposed event.
The organisers are planning to hold the festival across a Friday, Saturday and Sunday in mid-August.
They say it would make use of the transport links along the B6318 and A69 to Newcastle.
Local musicians and a proposed collaboration with North-East arts organisations such as the Sage Gateshead and the Baltic Centre for Contemporary Art, would ensure a unique mix of performers.
Security would be managed by GHT Global Limited, a company run by Mr Mason, while tickets would be offered for sale online, in advance.
It is understood preparations are now being made by Apollo Entertainment to submit a licensing application to Northumberland County Council.
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