Mr Scott says the channel will be funded from
$20 million of savings from technology changes
and efficiency gains.
ABC managing director Mark Scott says the creation of a new 24-hour news channel will not lead to a cut in resources for the broadcaster's regional operations.
The news service will be launched later this year on one of the ABC's digital channels.
Mr Scott says it will be funded from about $20 million of savings made through technology changes and greater efficiency in other areas of the ABC.
He was earlier questioned by Nationals Senator Barnaby Joyce about rumours of job cuts in regional Queensland and New South Wales.
Senator Joyce used a Senate estimates hearing to raise concerns that jobs would be lost in Mackay and Lismore.
But Mr Scott says that is not the case.
"We are not talking about cutting our commitment to regional and rural Australia and coverage at all," he said.
"I'm not aware of any specifics around that at all. All I have been told is that no decisions have been made."
ABC News 24 will deliver continuous and commercial-free coverage of major breaking stories in Australia and around the world.
New programs are being developed specifically for the channel, focusing on world news, national politics and business.
Many of the ABC's existing television news and current affairs programs, including The 7.30 Report, Lateline and Four Corners, will also be featured.
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