Glasgow City Council has agreed to spend almost £600,000 to fund the scheme for the next three years.
It will be run along similar lines to the Boris Bikes scheme which operates across large parts of London.
The contract to run the Glasgow project was won by German company Nextbike GmbH, which operates 15,000 bikes in 80 cities across 10 countries, including Nuremberg, Warsaw, Leipzig, Dubai and Christchurch.
City based charity Glasgow Bike Station, which promotes good mental and physical health through cycling as a means of transport, has been appointed to maintain the bikes.
Customers will be able to register as a member or as a casual user through the internet, smartphone or by telephone. Once registered, they are provided with a login username, membership and personal identification number.