"We had announced that we would be forming the party by October 2, so we will be doing that tomorrow. We will also announce the name of the party," said a Swaraj Abhiyan leader.
Earlier, on Jul 31, addressing the concluding session of a two-day Abhiyan national convention, Mr Yadav had announced the launching of the new political party by October 2 to provide an "alternative political vehicle".
Later, a committee was formed to look into the details of the new political party.
Mr Yadav had said, "We were never secretive about going political. A decision to launch a political party was taken with nearly 93 per cent of the delegates at the convention overwhelmingly supporting it.
Mr Yadav, however, had clarified that Swaraj Abhiyan will continue to exist even after the new political party is launched and the two will function independently.
Mr Yadav and Mr Bhushan were sacked from Aam Aadmi Party in April last year for "anti-party" activities. They had hit out at AAP chief Arvind Kejriwal questioning his "supremo style of working" and "lack of transparency" in the party.