The messaging service, called Anytime, will allow users to send messages, videos and photos, according to a report by AFTV news.
The app will also let people get involved in group interaction, including playing games and listening to music together.
Messages will be encrypted to provide private conversations – a feature in Facebook-owned Whatsapp that has been heavily criticised by Prime Minister Theresa May in the government’s efforts to crack down on crime and tackle terrorism.
Amazon has begun surveying customers about the features they would like to be included in the Anytime app but it is unclear when it will be released.
Users will be able to search for people by typing their name, doing away with the need for a phone number in the same way Facebook messenger works.
The app will be compatible with desktop and mobile phones, including Android and the iPhone’s iOS.
The news comes in the wake of reports that Amazon was considering a takeover of Slack, a corporate messaging and software start-up.
Amazon has also been expanding its online grocery division, having recently announced the acquisition of Whole Foods Market Inc (NASDAQ:WFM).
Elsewhere, Amazon has been preparing to take the lead in voice commerce with its Alexa-enabled devices, including the Echo smart speakers and Fire tablets.
Last week the company held its Amazon Prime Day, putting its Echo products on sale. The Echo Dot was this year’s biggest seller while Fire tablets also saw record sales.