Preparations for the Feb. 7-23 Sochi Olympics have been overshadowed by criticism of a new Russian law banning gay "propaganda."
"We must show respect for diversity, for all kind of people, with all kind of lifestyles and background," Oslo City Council member Hallstein Bjercke said.
To keep down costs, Oslo said it plans to host most events within the Norwegian capital, using existing facilities. Alpine skiing, bobsled and luge events would be held in Lillehammer, about 200 kilometers (125 miles) north of the capital.
Oslo announced last week that it would submit a bid to the IOC. The deadline is Thursday.
Another Scandinavian capital, Stockholm, is also in the race.
The other declared candidates: Lviv, Ukraine; Beijing and the northern Chinese city of Zhangjiakou; Almaty, Kazakhstan; and a joint bid from Krakow, Poland, and Jasna, Slovakia.
The IOC will select the host city in 2015.