Dream Number, which is subject to regulatory approval, will offer seven prize tiers ranging from £2 to £500,000. As part of the change, Lotto Extra will be scrapped.
The group has also pledged to develop new scratchcards and games to celebrate the World Cup and support London 2012. It is also planning to roll out 2,500 'electronic jackpot communicators' and a further 1,000 digital screens to retailers in 2006.
The launch of the new draw comes as Camelot announces a rise in ticket sales for the third successive year in its preliminary results for 2005/06. Sales rose by more than £246m - the biggest single rise in eight years - pushing the total to £5.01bn.
Camelot chief executive Dianne Thompson said: "This is a fantastic set of results for everyone at Camelot and the National Lottery. Innovation is the key to long-term growth in lotteries. We've been particularly encouraged by sales of dedicated National Lottery games to support London 2012, exceeding our first-year target for the lottery fund."
The National Lottery will also be supported by two new TV ads running throughout the summer, asking consumers 'What if you won?' and 'Where would you go?'.