Mr Ferguson said it was too early to know if the website would update stories throughout the day and what level of comment would be included.
At present, Our Auckland includes content from Mayor Len Brown and comment by councillors on relevant portfolio or local issues.
A source told the Herald that the website could be used to counter stories in the mainstream media which appear negative to the council.
"This follows concern that the Herald revealed the consents granted to the Ports of Auckland for Bledisloe Wharf extensions which led to a public backlash considered to have damaged the council's reputation," the source said.
Asked if the website would be used to counter the mainstream media, Mr Ferguson said: "We haven't got a product yet...but it is not going to be in competition with mainstream media."
The website will be funded from the communication and marketing existing budget.
Councillors have not been updated on the digital plan.
Councillor Mike Lee said he was concerned about the reference to the Ports of Auckland reclamation.
"The council was clearly in the wrong there. And no amount of spin can change that. I hope this thing is not meant to be some high powered propaganda operation," Mr Lee said.