JK Shin, head of Samsung Mobile Communications, announced the launch of the new device at a press conference in Seoul. He told reporters that the popularity of four-inch devices in Europe had inspired the new model.
"We'll be launching a 4-inch Galaxy S III on the 11th in Germany," he said. "There's a lot of demand for a four-inch screen device in Europe. Some call it an entry-level device, but we call it 'mini.'"
The latest Samsung offering will buck the trend among high-end Android devices, where products are usually four and a half inches or bigger.
The existing Galaxy SIII boasts a 4.8" screen and 2,100mAh battery and has helped Samsung power to record profits in the last three months. From July-September, the South Korean company is expected to make 8.1 trillion won (£4.5bn), nearly double the 4.25 trillion won recorded a year earlier. The Galaxy SIII was released at the end of May.
However, analysts have predicted that competitive product line-ups could be a risk for the company in the coming months.
The latest device in the Galaxy series is also the subject of an ongoing patent dispute between Samsung and Apple, which released Galaxy rival the iPhone 5 last month.
There had been widespread reports that the South Korean company would look to expand into the mid-to-low-end smartphone business by releasing a more simple version of the Galaxy SIII. However, Mr Shin denied the device would be an entry-level model.