The organisation - run by British architect Cameron Sinclair - hopes the new initiative will go some way to aiding the largest of the UN's Millennium Development Goals (MDG).
The competition will be for architectural interventions in large Third World unplanned settlements.
Sinclair said he hoped that this will assist the Eleventh MDG, which is to 'improve the lives of at least 100 million slum dwellers by 2020'.
The competition will aim to challenge architects and designers to improve the conditions in slums and allow their residents to 'create greater social and cultural cohesion'.
Further information on the competition is yet to be released, but will appear on www.architectureforhumanity.org in the New Year.