Although the "zombie" league format has existed (with some different variables, depending on your source) for over five years, you still may not find a fantasy game provider that offers zombie league settings. With that said, it can take some time (and creativity) to run this type of league.
In one version, all but one owner or team will participate in the fantasy draft. After the draft has completed the 'zombie' team will be able to build their team from the pool of non-drafted players. In a head to head format, the zombie team will face a normal team each week. If the zombie team wins, they get to steal the best player from the team they beat, and that losing team has to drop their remaining players and becomes another "zombie" team. The dropped players join the waiver wire, where all teams - including the team that lost - can bid on them. This process will continue throughout the season.