The growth of dairy sheep farming in Brazil combined with consumer´s preference for concentrated yogurts and the search for innovative products with different flavors and textures demonstrate the opportunity for diversification of sheep milk derivatives. The objective of this study was to develop two novel formulations of Labneh cheese made of sheep's milk and to verify their shelf life considering microbiological and physical-chemical quality under refrigeration storage. Formulations L1 and L2 were prepared using a similar protocol with pressing times of 4 and 3 hours respectively, and this difference caused little influence on the parameters evaluated, showing no need for this additional time. Both formulations had the desired spreadability characteristic and the final products showed moisture and fat content classified as very high moisture and semi-fat cheeses according to the Brazilian legislation. The microbiological counts in L1 and L2 after 150 days of cold storage were within legal limits for thermotolerant coliforms, Staphylococcus aureus, Salmonella sp. and Listeria monocytogenes. The satisfactory results in the microbiological and physical-chemical evaluations demonstrated that the Labneh formulations and processing method were efficient to produce a stable product of good quality, indicating that it can be commercialized to a specific niche market.