The Post Office appointed the publisher to create a 68pp A5 pilot magazine, targeting the 28m customers who visit its branches each week.
The initial print run will be 3m copies, but Condé Nast has said that, if successful, the subsequent runs would be "several million more".
The as-yet-untitled pilot issue will be available in selected Post Offices nationwide from February, with plans to roll it out to all its 14,600 branches on a quarterly basis later in the year.
The title will be the third-biggest UK magazine, behind Sky Magazine, which has a run of 6.7m and is printed by Prinovis in Germany, and the AA's 4m-run new title RewAArd, printed by Pillans & Waddies in Livingston.
Condé Nast could not confirm who would print the title at this point.
The Post Office is hoping that the magazine will replace the huge amount of promotional leaflets and materials that are currently available on its shelves.
"We are really trying to change the appearance of our branches," said a spokeswoman for the Post Office.
"One of the ideas of the magazine is to de-clutter and modernise them by reducing the promotional material on the walls," she added.
The launch will also result in Asda's monthly customer magazine, printed by Polestar Sheffield, becoming the fourth biggest in the UK, with a circulation of 2.6m. Meanwhile, Boots Health & Beauty, printed by Cooper Clegg, will fall to fifth place with a run of 1.8m.
Condé Nast's contract division produces magazines and catalogues or Harrods, House of Fraser and Littlewoods, while its consumer division is home to GQ and Vogue.
Clare Dove, publisher for the Condé Nast contract division, said: "The Post Office operates the UK's largest retail network, so it's exciting to be working on such an important and far-reaching project."
Top five customer titles
- Sky the magazine: 6,783,581
- Asda: 2,631,293
- Boots Health & Beauty: 1,765,387
- Unison's U: 1,465,833
- The Somerfield Magazine: 1,134,364
Source: ABC
Condé Nast set to award third biggest UK magazine contract
A bumper printing contract to produce a magazine with one of the biggest circulations in the UK is set to be awarded by publisher Condé Nast.