The unusual move marks the first-time that either The Daily Telegraph or The Sunday Telegraph have published such a cover wrap.
The Telegraph titles have previously published translucence cover wraps but never one of newspaper stock, which is the same quality of the newspaper.
The cover wrap advertises Dior's VIII watch, a diamond headed timepiece which is shown being worn by a model.
Sources have told Media Week that TMG (Telegraph Media Group), publisher of the Telegraph titles, believes the advert does not detract or undermine from the content of The Sunday Telegraph.
The Daily Express was the first national newspaper to publish a cover wrap, striking a deal with car brand, Fiat.
Follow John Reynolds on Twitter @johnreynolds10