According to reports, Saeed is all set to register the outfit with the Election Commission of Pakistan and is expected to launch the party on August 14 at a function in Lahore.
Saeed is considered among one of the most dreaded terrorists in the world, featuring in the wanted lists of both India and the United States.
The development can have massive repercussions with the Pakistani Supreme Court recently disqualifying Prime Minister Nawaz Sharif over the Panama Papers expose. The Sharif government had extended the house arrest of Saeed and four of his aides for their activities that were "detrimental to peace and security", says an Express Tribune report.
While he is an internationally designated terrorist, Saeed continues to be an influential person in some of Pakistan's religious groups. He is also said to have close relations with the Pakistani Army and the Inter-Services Intelligence (ISI).
Pakistan claims to have banned Lashkar-e-Taiba (LeT), but following the attack on the Indian Parliament in 2001, it re-emerged as Jamaat-ud Dawa (JuD). The United Nations has recognised JuD as a political front of Lashkar.