Cllr Jimmy Kavanagh is to raise the issue with the town council at Monday’s meeting of the council.
Cllr Kavanagh said he sees no reason why the Cathedral Town cannot launch the scheme.
The public bike rental scheme has been a huge success since it was launched in Dublin over four years ago.
Cllr Kavanagh said the Letterkenny scheme could be similar to Dublin but on a smaller scale.
“We could half a dozen rental bikes and place them at designated stations such at perhaps the bus station or in the centre of the town.
“People laughed at the idea of a scheme in Dublin and claimed the bikes would be stolen or vandalised but they haven’t.
“It has been a huge success for both locals and tourists in Dublin,” he said.
Cllr Kavanagh said the rental scheme could link in with plans for cycle tracks across the county.
He said he hoped the idea will be explored and supported by his fellow councillors.