The California-based Web search leader said the new browser, called Google Chrome, would "add value for users and, at the same time, help drive innovation on the web.
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"We realized ... we needed to completely rethink the browser," Google's Sundar Pichai said in a blog post.
The application can be downloaded for free in more than 100 countries and its code will be open source so no rights will have to be paid by anyone using or adapting the software.
Chrome is Google's latest weapon in its bid to become the leader in all Internet areas.
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The latest major browser war was won by Microsoft when it won the battle for dominance in the 1990s against Netscape Navigator.
The move comes amid growth in browser market share by Firefox, a project of the nonprofit Mozilla Foundation, which ironically get a large portion of its funding from Google.
According to estimates by the research firm Net Applications, Internet Explorer is used by 74 percent of computer users worldwide compared