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Azerbaijan president Ilham Aliyev will add his country's name to a list of bidders that includes the USA, Italy, India, Japan, Brazil, Spain and Qatar.
"Everyone in the world knows Azerbaijan as a sporting nation," said Aliyev, who also finds the time to head up the country's Olympic committee.
"We will do everything possible to succeed with our 2016 bid but if not, we hope to bid again in 2020."
The International Olympic Committee (IOC) will choose the host city in 2009.
Azerbaijan, an oil-rich country by the Caspian Sea, has not hosted a major world championship since gaining independence following the Soviet break-up of 1991. BBC