SAGA is one of 13 bidders hoping to win a commercial radio licence in the region and create 30 jobs.
Others in the race include All Talk FM (North-East), in Barnard Castle, County Durham, and 3 Rivers Radio and North East One, which are both in Newcastle.
Celador Radio Broadcasting, whose board of directors includes veteran broadcaster Chris Tarrant, is also bidding, with Touch FM.
Saga, best known as a provider of holidays and financial services for people aged 50 and over, already has a successful media operation, which includes the Saga Magazine and three regional radio stations, in the east, West-Midlands and Glasgow.
Saga radio director Ron Coles said: "The North-East is a key region for Saga.
"Almost half of the two million adults who live in the area are aged 50 or over, and we want to bring them a radio station which is designed with their specific interests and tastes in mind."
Research by Saga found that 93 per cent of those who replied would be likely to listen to Saga's proposed format - a station with easy listening music from the past six decades, news and lifestyle information.
If Saga is granted the licence, which is due to be decided by the Office of Communication's licensing committee in April or May, Saga FM will be on air by the end of the year, creating 30 jobs in the process.
The media company behind the Who Wants to Be a Millionaire? quiz show, Celador, has bid for the station, which will cover an area across Newcastle, Gateshead, Sunderland, Durham, Hartlepool, Middlesbrough, Stockton, Darlington, Bishop Auckland, Consett, Hexham and Alnwick.
Its Touch FM bid team will be chaired by Alastair Balls, chief executive of the Centre for Life, in Newcastle, and chairman of the Newcastle Gateshead Initiative, and includes Steve Cochrane, owner of Middlesbrough department store Psyche, and Giles Squire, former group programme director of Metro and Century Radio, in the North-East
One of the founders of Metro Radio, John Josephs, is behind the 3 Rivers Radio bid, put forward by UK Media and Radio North-East Limited, in Newcastle.
Its proposed station is designed to appeal to 40 to 60-year-olds, with music, local news and interviews.
All Talk FM, is owned by UTV Radio, part of Ulster Television, and has proposed a station with regional and national news and sports information.
Other bidders include rock stations The Arrow, RockTalk FM and Diamond FM, children's station 97.5 Fun FM, and Original FM, Northlife 97.5FM, Smooth FM and 97.5 XFM.
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