Announcing the decision in the state assembly, Banerjee said the state's 20th district will come into existence June 25.
While the Jalpaiguri Sadar and Mal Bazar subdivisions will continue to be in Jalpaiguri district, the Alipurduar subdivision will be carved out to be a new district.
Of the 17 excising police stations, nine will remain in Jalpaiguri while the other eight will now be under the new district of Alipurduar.
Banerjee said that the bifurcation of the district was a long standing demand of people of the district.
"Being far from the district headquarters, people faced delays in delivery of government services. They had to spend a considerable time in coming to district headquarters. The bifurcation will help the people of the district," she said.