The Austrian outfit have had no involvement in grand prix motorcycling's premier class since an engine partnership with Team Roberts in 2006, but have been regular contenders in the lesser classes.
And head of motorsport Pit Beirer has set a target of 2017 for a return to MotoGP.
"I can absolutely confirm that we have had a board decision at home at KTM that we could make the big step into this class," he told MotoGP's official website.
"We had plans to go first to Moto2 somehow and grow maybe in smaller steps, but it doesn"t make a lot of sense to build a KTM with a Honda engine inside so it would never be a real KTM.
"So we decided to make the big jump and go into MotoGP.
"We are already very busy with this and we are trying everything to get ready for 2017.
"We know it will be a really tough project for us and we will need years now to step into the class and to be ready. But I'm also sure that with our engineers at home we are able to do it.
"It's a long-term project. We are at the very beginning, but we are looking forward to being part of the big show in the motorcycle world, because MotoGP is a dream for any manufacturer, to be part of the highest level of bike racing in the world. That's our target."
Meanwhile, KTM rider Jack Miller " who leads the Moto3 standings with five races remaining " will make the step up to MotoGP next season after it was announced that he will join LCR Honda.