Virgin's service would provide non-customers with a free but relatively slow 0.5 megabits per second connection - sufficient for email and basic web browsing - which would rise to 10Mbps for subscribers to Virgin Media Home.
The move is likely to raise eyebrows at BT, which which charges non-customers up to £5.99 for 90 minutes' access to its network.
Virgin's plan is part of a broader push towards providing the internet on tap for anyone, anywhere.
Last year, London's Mayor, Boris Johnson, gave his backing to schemes aiming to provide free wi-fi to the capital.
He called London "the home of technological innovation" and said lampposts and bus stops could be wi-fi-enabled using existing cabling.
Virgin Media aims to use existing roadside cabinets to house its wireless routers.
This week, the Mayor's office announced a plan to equip London's red buses with free wi-fi. Earlier this year, Transport for London said it wanted to install wi-fi hotspots in as many as 120 underground stations in time for the 2012 Olympics.
Outside London, cities including Bristol provide free wi-fi internet services, while "connected cities" schemes are commonplace in other countries.
Virgin first announced its interest in providing municipal wi-fi in November last year, when it said it was "actively exploring" plans to use its existing cable network to provide thousands of fast wi-fi hotspots across the country in a bid to keep up with booming demand for data on the move.
- INDEPENDENT