This news has absolutely made my day.  Out November 6, vinyl only.  Check out the link for the track listing.  http://pitchfork.com/news/47922-ty-segall-thee-oh-sees-fresh-onlys-white-fence-on-velvet-underground-nico-tribute-lp/

Pre-ordered mine from Castle Face today. There are only 1000 and they will only be available by mail order from the label or at gigs from the bands involved. Banana coloured wax, better get in quick if you want one.

Sounds cool. And on the topic of the Velvet Underground, I just saw that Sundazed Music is releasing a 5-LP box set that looks pretty sweet:

Sundazed October 2012 New Releases
Street Date October 30, 2012 
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THE VELVET UNDERGROUND 5-LP DELUXE BOX SET

Artist: THE VELVET UNDERGROUND
Title: The Verve / MGM Albums
VU 4003 - 090771400314 -  5-LP DELUXE BOX SET

THIS IS A BOX OF ESSENTIAL ROCK & ROLL HISTORY.

At a time when the Rolling Stones were forbidden from singing about spending the night together on national television, the Velvet Underground was crafting songs about such taboo subjects as illegal drugs, sadomasochism and black angels of death. And that was just on their debut. Throughout their first three albums, VU continued to challenge societal norms through their lyrics and rock music itself through their unorthodox instrumental approach. Their sound was theirs alone, which proved to be an obstacle when it came to sales. The majority of popular music fans simply weren’t ready for the bleakly beautiful vision of VU. But for those who were, this LP trilogy was a clarion call, drawing together the outsiders who felt disenfranchised and unfulfilled by Top Forty fodder. Like time release capsules, these LPs became catalysts for change as they spread from city to city and were consumed by adventurous listeners. Bands formed, scenes coalesced and new musical paths emerged which would eventually branch off into punk, alternative, indie and more. Take a sample from any underground music genre and you’re likely to find VU DNA pulsing through its core.

As the alternative scene grew, so did the legend of the Velvet Underground. However, with relatively few of the original LPs in circulation, finding them could be difficult and, as a result, more people had probably heard OF the band than had actually heard their music. The emergence of compact discs in the mid-80s, along with a groundswell of VU-influenced bands singing their praises, finally got their music into wider distribution. Yet, for vinyl enthusiasts who longed to place those precious albums on their turntables, that thrill remained elusive.

Until now. With tremendous pride, Sundazed presents The Velvet Underground: The Verve/MGM Albums. This beautiful, deluxe boxed set gathers the rare mono versions of the band’s first three studio albums along with the superior mono version of Nico’s Chelsea Girl and a definitive edition of the band’s unfinished fourth album! Sourced from the original Verve/MGM analog reels and mastered by Bob Irwin, this collection is an essential purchase for the discerning vinyl devotee. For all tomorrow’s parties, this is your soundtrack.

- The ultimate collection of underground rock’s big bang!
- Includes the rare mono versions of the VU’s first three albums, the superior mono version of Nico’s Chelsea Girl (featuring Reed, Cale & - Morrison) and a definitive edition of the band’s unfinished fourth album!
- Housed in a beautiful deluxe box with all original LP artwork along with two bonus poster inserts!
- Introduction by Rolling Stone senior editor/MOJO contributor David Fricke.
- Sourced from the original Verve/MGM analog reels and mastered by Bob Irwin.

I hope they dedicate it to Lou Reed's Memory.