Martha Stewart isn’t launching a new line of home products at JCPenney stores — she’s launching them at a new chain of Martha Stewart stores, which just happen to be located inside JCPenney stores.

That’s the clever argument that Martha Stewart’s lawyers hinted at before a Manhattan Supreme Court judge this week as they fended off charges that the domestic diva’s new 10-year, $200 million licensing deal with Penney violates her existing contract to distribute home goods at Macy’s.

“The argument is that Martha Stewart Living Omnimedia can sell any Martha Stewart product inside a Martha Stewart store,” according to a source close to the situation.

Indeed, Penney’s new CEO Ron Johnson — who previously headed Apple’s wildly successful chain of sleek stores — announced in December that Penney will open an in-store shop for Martha Stewart products that will feature something like a “genius bar” for home decor questions.

Nevertheless, another insider added that Macy’s believes a contract it recently renewed with Stewart, which extends to 2018, forbids any such arrangement with Penney.

Sources said portions of Macy’s lawsuit are expected to be made public as soon as today.

Officials at Macy’s, Martha Stewart and JCPenney declined to comment yesterday.

jcovert@nypost.com