"It has been a long cherished dream which is finally coming true," Priyanka said in a statement.
The 29-year-old has signed a recording agreement with music company Universal Music Group (UMG) and Desi Hits!, a fusion entertainment platform.
She will release the album in North America with Desi Hits through Interscope Records and in other international markets on Britain's Island Records.
"I am truly excited to have an opportunity to present my musical dimension on a world platform...This is a fascinating new experience for me and I am thoroughly enjoying the journey," said the National Award-winning actress, who is also known for her involvement in humanitarian causes and being a green crusader and brand ambassador.
Atom Factory CEO Troy Carter, who also manages international pop star Lady Gaga's career, has signed with Priyanka to manage her music career across the globe.
"We believe wholeheartedly in Priyanka's talent, drive and creative vision. We are confident in her ability to redefine pop music on her own terms," said Atom Factory executive vice president and general manager Anthony Saleh.
Signing Priyanka is also a major feat for Desi Hits!, founded by its CEO Anjula Acharia-Bath in partnership with UMG in 2010, to promote creative artists with Indian or south Asian roots.
Acharia-Bath flew to India with UMG Britain chief executive David Joseph to sign on the actress.
Universal Music foresees a bright future for Priyanka's singing talent too. "Bollywood has had Priyanka to itself for too long. She has exceptional talent and we look forward to launching her recording career around the world," said Joseph.