"This idea has been germinating for several years and I relish the prospect of setting a book in Marlowe's California, which I always think of in terms of Edward Hopper's paintings. Bay City will have a slightly surreal, or hyper-real, atmosphere that I look forward to creating."
Marlowe, a wise-cracking private eye, is one of crime fictions most enduring characters and was famously played on screen by Humphrey Bogart in the classic noir The Big Sleep.
Wexford-born Banville won the Man Booker Prize in 2005 for The Sea.
His editor John Sterling said: "John Banville writing as Benjamin Black recreating Raymond Chandler is a perfect literary hand-off.
"There is no one better to bring Philip Marlowe back to life for the vast readership that loves noir crime fiction."