Easyjet describes the AVOID system as a "weather radar for ash" that involves placing infrared technology onto aircraft to supply images to pilots and flight control centres.
The images will enable pilots to see an ash cloud up to 100km ahead at altitudes of 5,000 to 50,000 feet, allowing them to adjust the flight path.
On the ground, data from aircraft with AVOID technology can be used to build an accurate image of volcanic ash clouds.
Easyjet claims this will open large areas of airspace that would otherwise be closed during a volcanic eruption.
The carrier plans to have the first test flight carried out by Airbus on its behalf using Airbus A340 aircraft.
Easyjet chief executive Andy Harrison said AVOID was the "silver bullet that will make large-scale ash disruption history".
"The ash detector will enable our aircraft to see and avoid ash clouds, just like airborne weather radars and weather maps make thunderstorms visible," he said.
Civil Aviation Authority chief executive Andrew Haines said: "The CAA welcomes the fact that airlines are considering innovations such as this as we will do all we can to facilitate them."