The BBC wants to increase the licence fee by 2.3% above inflation to boost its digital services and other output.
The corporation is to present its bid for the next licence fee settlement to a House of Commons select committee.
If the government accepts the BBC's proposal, the fee would rise by £3.14 per year until 2013, not including inflation. The current fee is £126.50.
BBC director general Mark Thompson said the rise would fund the switch-over to digital TV and BBC on-demand services.
"We know that licence fee payers find the licence fee a burden in their household costs," Mr Thompson said.
It is a big step towards digital Britain
"But on the other hand, we also know that they are overwhelmingly in favour of the BBC spearheading these new digital services.
"It is a bigger licence fee, but the BBC gives out of it bigger digital TV and digital radio services. It is a big step towards digital Britain."
The corporation's valuation will kick off negotiations that will eventually see the government set the new annual fee.
'Fairest way'
The current deal ends in April 2007 and the next will last for seven years. The licence fee currently generates £2.94bn a year for the corporation.
Under the current deal, set in 2000, the licence fee goes up by 1.5% above inflation per year. It will increase to £128.50 next year, not allowing for inflation.
Culture Secretary Tessa Jowell has said the licence fee is "not perfect" but is still the fairest way to fund the BBC.
But she has also said she wants the BBC to become more accountable to the licence fee payer.
Fewer repeats
In March, the government published a green paper proposing that the BBC should spearhead the UK's switch to digital TV by 2012.
The BBC has also pledged to show fewer repeats and move some of its operations out of London - although the move to Manchester depends on the licence fee settlement.
The corporation also aims to make its TV programmes available on the internet, to make its programme archive more accessible and to invest more in local TV and radio services.
Mr Thompson and BBC chairman Michael Grade have already made a series of shake-ups, including almost 3,800 job cuts and internal value-for-money drives.
Mr Grade said: "This bid has been thoroughly and independently scrutinised by the governors.
"We commend it to government as an efficient business plan designed to meet licence payers' expectations at the lowest cost."
The negotiations come as the government prepares to set out the corporation's role, function and structure in its next 10-year royal charter, which will also come into force in 2007.
