Known simply as Selena, the Mexican-American queen of Tejano music was shot to death in March 1995 by a former employee. Her last album was released posthumously later that year.
The cosmetics giant released no additional details on the collection, expected in the latter half of 2016.
"Selena's talent and beauty, inside and out, have left a colorful, meaningful impact in the world that has continued to grow over the last two decades," said James Gager, MAC senior vice-president and group creative director.
Gager continued in a statement released via email that the company has "heard the passion and enthusiasm from her fans."
Suzette Quintanilla, Selena's sister, was involved in the project.
"Helping to create this collection brings me back to all those late-night conversations on our tour bus when she spoke of having her own makeup line one day," Quintanilla said in the statement. "If Selena were here she would be beyond ecstatic to have this happening.'