The merged unit of Fiat Chrysler Automobiles and PSA Group will be known as Stellantis.
The auto makers said the name "will be used exclusively at the group level, as a corporate brand" and that the names and the logos of the group's constituent brands will remain unchanged.
The companies said the name is rooted in the Latin verb stello, which means "to brighten with stars." The companies said the next step will be the unveiling of a logo.
"The name's Latin origins pay tribute to the rich history of its founding companies while the evocation of astronomy captures the true spirit of optimism, energy and renewal driving this industry-changing merger," the companies said in a statement.
The group will create the world's fourth-largest auto maker. PSA's considerable footprint in Europe could complement FCA's strength in North America.
The completion of the merger is expected in the first quarter of 2021.