The change in policy means all 147 tram vehicles used on the network will need to be adapted and with seating layouts changed, the Local Democracy Reporting Service said.
The 99 Metrolink stations will also be assessed for their suitability to handle bikes although Transport for Greater Manchester (TfGM) said several stops will not be suitable for bikes, such as Market Street in Manchester city centre, which is likely to be too narrow.
Metrolink currently allows folded bikes and provides cycle parking at most tram stops.
Certain sizes of mobility scooters are also allowed, subject to a permit scheme.
A decision notice on the matter has been published by TfGM.
It said: “Allowing bikes on Metrolink would align with our transport strategy which aims to build a world-class walking, wheeling and cycling network.
“By allowing the carriage of bikes during off-peak times the catchment area of Metrolink could be widened as people may choose to cycle a little further.
“This could boost patronage by tapping a new market during off-peak times when the services have capacity.”
The report added bikes would only be allowed during quieter periods and would still be banned when football matches and other special events were taking place.