Davutoglu, a former professor of political science and international relations, served as prime minister from August 2014 until May 2016, when he was forced out by President Recep Tayyip Erdogan.
The former Justice and Development Party (AKP) prime minister will focus on the predominantly Kurdish east and southeast, the German state broadcaster said, targeting conservative Kurds who do not support the ruling Islamist party.
Following a decision by the country's top electoral body to rerun the election for mayor of Istanbul, Davutoglu said on Twitter the ruling violated the international law.
Meanwhile, Ali Babacan, a former deputy prime minister in charge of the economy, also appears to be trying to form a new party, Deutsche Welle Turkish said, but has rejected calls to join Davutoglu.
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