The application is said to be independent of the company's work with the Oculus Rift headset, bringing more immersive video experiences to iOS and Android users.
Users will be able to "move around inside the video and view it from different angles" by turning and tilting their mobile device, reports the Wall Street Journal.
Facebook pledged its commitment to bringing virtual reality to the fore last year when it shelled out $2 billion (£1.2bn) on Oculus Rift maker Oculus VR.
