The authority aims to get a message to the astronaut through the European Space Agency to invite him to accept the accolade when he returns to Earth.
The 43-year-old, the first British astronaut to carry out a spacewalk, is two months into a six-month mission on board the International Space Station, carrying out experiments and research. He has been in space for just over two months.
Chichester mayor Peter Budge said: "We hope that Maj Peake will accept this honour but I am sure his diary will be very full when he returns to planet Earth, so we will not know for a while when we can present him with the freedom scroll and sign the roll of freedom holders."
Peake was born in Chichester and attended the city's High School for Boys, which has named its science centre after him. He was also a member of the local air training corps, and his parents live near the city in the village of Westbourne.
The freedom of Chichester is an honour adopted in 1901, but has its early origins in the 12th and 13th centuries.
Town clerk Rodney Duggua said: "It is the highest honour the city council can bestow, and the local government equivalent of an investiture."
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Tim Peake wins freedom of Chichester when he returns to Earth
Beachy Head is a chalk headland famous for its striking white cliffs, dramatic coastline and magnificent views. Just east of Seven Sisters the area is popular with tourists throughout the year.
The Victorian pier on the south coast was first opened in 1865 and has seen thousands of visitors taking in the stunning coastal views over the years.
Cardigan Bay in west Wales is the gateway to the Teifi Valley and boasts an unspoilt landscape, rich heritage and abundant wildlife.
The large and diverse area of Colwick Country Park provides the perfect location for outdoor activities such as angling, sailing and walking.
Conwy Castle is one of the finest surviving medieval forts in England. The 13th-century fortress consists of two barbicans, eight towers and a bow-shaped hall.
The South Downs National Park covers a spectacular 1,600km2 of the Sussex countryside and offers stunning landscapes and a host of attractions for visitors to enjoy.
Derwent Water is just ten minutes from the historic town of Keswick and sits just below Catbells fell to the west and Friar's Crags to the east.
Dunnottar Castle is found on a dramatic clifftop overlooking the North Sea. The stunning ruined fortress is made up of a number of stunning buildings that date back to the 13th-century.
Dunraven is arguably one of the most picturesque coastal villages in the Vale and the half pebble, half sand beach is one of the most popular local attractions.
Durdle Door is a natural limestone arch that can be found west of Lulworth Coast, just off the Dorset coast.
Weston-super-Mare's Grand Pier was totally renovated in 2008 after a fire destroyed the pavillion. The pier is now home to a number of attractions, cafes and restaurants.
This motte and bailey castle is a medieval fortress that dates back to the 11th century and is often considered to be one of Wales' most impressive castles.
The famous Roman wall runs through the wild Northumberland landscape and is one of the most well-known sites of interest in the UK.
Higger Tor is a significant landmark in the National Park and overlooks the Burbage Valley and Carl Wark. Carl Wark can be found on Hathersage Moor and the surrounding cliffs and prehistoric embankment form an Iron Age hill fort.
HMS Warrior was launched in 1860 and was the most powerful ship of her time. Now out of action, restored and back in her hometown of Portsmouth, the ship is a museum, monument and visitor attraction for locals and tourists to enjoy.
The Isle of Wight's mild climate, white cliffs and tranquil beaches make it a popular holiday destination throughout the year and even more so in the summer when the sailing community head to the island to enjoy Cowes Week and the Round Island Race.
The popular loch is home to watersports, sandy beaches and a yacht club. Loch Morlich is the only freshwater beach in Scotland and provides a perfect location for outdoor activities for everyone to enjoy.
Widely thought of as one of the most vibrant cities in Europe, London is constantly growing and adding even more recognisable buildings to the already iconic skyline.
The ancient town of Lyme Reguis is home to breathtaking coastal scenery and a number of historical landmarks and attractions. Found in the heart of the Jurassic Coast, the town is also known to be a major site for fossil collecting.
This small village can be found on a picturesque inlet of Chichester Harbour and is noted for being a thriving area for sailing enthusiasts.
Yesnaby is on the west coast of Orkney, the archipelago off northern Scotland. The area is famed for its striking Old Red Sandstone cliff coastline.
Pen-y-Ghent is a fell in the Yorkshire Dales and makes up one of the Three Peaks, the other two being Ingleborough and Whernside. The Ribblehead Viaduct was built in the 1870s and is an iconic Grade II listed structure found in North Yorkshire.
Clevedon is a Victorian seaside town that overlooks the Severn Estuary. The Grade I listed pier was described by Sir John Betjeman, as "the most beautiful pier in England".
The Ring of Brodgar standing stones have become one of the most recognisable sights on Orkney and represent the islands' ancient heritage.
This motorway suspension bridge spans the River Severn and River Wye between South Gloucestershire in England and Monmouthshire in South Wales.
The monument is a memorial to Scottish philosopher, Dugald Stewart. The statue sits on Calton Hill and overlooks the Scottish capital, it was completed in August 1831.
Stonehenge is a prehistoric monument that can be found in Wiltshire. It is the remains of a ring of standing stones that archaeologists believe was built anywhere between 3000 BC to 2000 BC.
The Valley of Rocks is a dry valley on the North Devon coast that is known for its feral goats and unusual geology. It's thought that the valley owes its existence to the coastal cliff recession.
Renowned for its architectural style, Brighton's West Pier has long been considered Britain's most iconic pier. Originally opened in 1866, the pier was declared unsafe and closed to the public in 1975. In 2003 two fires broke out on the pier and fire crews were unable to help as the walkway had collapsed. Now all that remains is the shell of the once magnificent building.
The coastal area of West Sussex is officially the sunniest county in England and is home to the South Downs Way, one of the longest footpaths and bridleways in England.