Council support services manager Gerard Collings said as part of the trial tertiary students would be offered a 25% discount on bus fares during March and April.
If the trial was successful, a permanent reduction of fares for students could be included in next year's annual plan, Mr Collings said.
''If it's not going to be at the detriment of the fare revenue across the network then it's got to be a good thing if it encourages students to use public transport.''
The council would cover any loss in revenue to bus operators from the trial, but it was possible increased patronage could boost profits.
''We would anticipate that an incentive like this will get more students on the bus, so we believe the risk to council is very low.''
The final details of the trial would likely be finalised over the next three weeks, he said.
The Otago University Students' Association and Otago Polytechnic Students' Association have long been pushing for student fares.
OUSA president Francisco Hernandez said student fares had been a ''holy grail'' for student politicians and it was great to finally make progress on the issue.
Reduced fares would make it easier for students to live further away from the university, while also being good for the environment, Mr Hernandez said.
During the two-month trial, the OUSA would work hard to promote bus use among students, he added.
