The original Megaupload file-sharing site proved enormously popular and was thought to have about 50 million users a day at its peak.
It was shut down in 2012, following accusations by the US that copyright pirates made heavy use of it.
The new service would reinstate the accounts of all former users of the original Megaupload, said Mr Dotcom.
Plans for the revived Megaupload were revealed in a series of tweets by the German-born entrepreneur, who now lives in New Zealand.
He said it would be formally launched on 20 January - five years to the day since his home was raided by police investigating the "massive" amount of pirated material available via Megaupload.
Since the raid, Mr Dotcom has waged a lengthy legal battle to fight accusations that he profited from others abusing Megaupload and to recover the assets seized at the time.
He is also fighting attempts to extradite him to the US to face trial over his control of Megaupload.
The tweets suggest that the new Megaupload service will involve the Bitcoin virtual currency.
However, it is not clear whether it is being used as a payment system or as a way to track what people share via the service.
It is also not clear how accounts created on the original service will be reinstated.
Mr Dotcom wrote that emails would be sent to former users when the service was ready for them to rejoin it.
Mr Dotcom has also said the 2017 version will:
As well as sending messages about the new service, Mr Dotcom issued an appeal to former Megaupload staff to get in touch to help bring it to life.
In the years since the raid, Mr Dotcom has dabbled in New Zealand politics and launched a separate file-sharing and storage service called Mega.
He resigned from Mega's board of directors in 2013, and since then the company's other investors have taken control and run it separately.

The ex-England boss, 54, was due to meet the Rams hierarchy on Friday.
But the meeting has been brought forward following Derby's failure to reach the Championship play-offs and growing unrest about McClaren's link to the manager's job at Newcastle.
McClaren is understood to be resigned to leaving the club.
Only last week Rush said the season review should not be too "draconian".
But McClaren's refusal to completely rule out a move to Newcastle when the rumours first began upset some of the board members, including director Mel Morris who is set to take over from chairman Andy Appleby.
And although McClaren did reject the chance to take over as Magpies manager in May, and said he was "100% committed to Derby", there is a feeling that his refusal to quash the rumours in the first place played a part in the club's poor end-of-season run.
The Rams were leading the Championship in late February but won just two of their final 13 games and missed out on the play-offs on the final day of the campaign when they lost 3-0 at home to Reading.
Morris, who was last year appointed to the club's board, is set to be confirmed as the club's new chairman in the coming weeks.

The Dons twice led in the first half, through David Fitzpatrick's 20-yard strike and Tom Elliott's volley.
But Compton levelled on both occasions, running through to slide home and curling in a free-kick from out wide.
And the winger sealed his treble from the penalty spot after substitute Kevin Dawson was fouled by Callum Kennedy.
The home side drop to 10th in the table after seeing their four-game winning run come to an end, while the Glovers are three points ahead of Dagenham & Redbridge, whose match was postponed.
AFC Wimbledon manager Neal Ardley told BBC Radio London:
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"You concede three goals at home, that's not good enough.
"I knew this would be tough and I drummed it into the players. That's the sort of game I expected.
"We struggled at times and we had too many players who probably didn't perform to the levels they have performed at. We're giving away really, really poor goals.
"We ran out of ideas trying to chase the game in the last 20 minutes."
Net entrepreneur Kim Dotcom plans to relaunch the Megaupload web storage system in January 2017.
[NEXT_CONCEPT]
Derby head coach Steve McClaren is to hold talks with chief executive Sam Rush on Thursday amid speculation he may be sacked, BBC Derby Sport reports.
[NEXT_CONCEPT]
Jack Compton hit a hat-trick to earn a shock comeback win at AFC Wimbledon and take Yeovil Town three points clear of the League Two relegation zone.