The commission is to examine the work of the Foreign Service and other authorities over the past decades, the Norwegian news agency NTB reported on Tuesday.
"It is crucial that the facts are brought to light," Prime Minister Jonas Gahr Store said in parliament.
The parliamentary oversight committee previously proposed the establishment of the commission.
The parliamentary leadership is to appoint its members.
Among those in the spotlight due to their contacts with US sex offender Epstein is former Norwegian prime minister Thorbjørn Jagland, who also served as secretary general of the Council of Europe.
Also facing scrutiny were the former ambassador to Jordan and Iraq, Mona Juul, and her husband, the former top diplomat Terje Rod-Larsen.
According to NTB, investigations are under way against Jagland and Juul on suspicion of serious corruption, and against Rod-Larsen on suspicion of aiding and abetting serious corruption.
Former Norwegian foreign minister Borge Brende resigned as head of the World Economic Forum after his contacts with Epstein came to light.
Meanwhile, Norway's Crown Princess Mette-Marit is said to have maintained a close friendship with the pedophile.
The planned investigation is set to go back as far as 1993.
NTB said the probe will examine the relationships between Norwegian authorities and external organisations, foundations and networks in which Norway was involved.
