TfL has began submitting planning applications for around 400 cycle docking stations within London - the locations where people will pick up and drop off hire bikes.
London boroughs and Royal Parks within zone one are now working alongside TfL to identify the most suitable locations to maximise the scheme's potential.
Stations will be placed around 300 metres apart, meaning those in Central London will never be more than a few minutes from a docking station.
When launched in May 2010, the scheme is hoped to add an additional 40,000 cycle journeys daily within Central London.
David Brown, managing director of Surface Transport, TfL, said: "The Cycle Hire scheme will be the most sustainable, environmentally friendly form of public transport ever seen in London, and will provide people with an inexpensive and convenient way of making short trips around London.
"Available 24 hours a day, 365 days a year, the London Cycle Hire scheme will help to alleviate congestion hotspots on the tubes and buses in central London, as well as build on the massive growth London has already seen in cycle journeys in recent years."
"It forms a key part of the record £111m the Mayor and TfL are investing in cycling this year, helping to revolutionise conditions for people who want to cycle in the Capital."