Aref Salem, the councillor responsible for transportation, said the 2013 murder of Ziad Bouzid was the impetus for the process.
"It's for the security of the passengers and for the security of the drivers too. So we did it in the action plan, the mayor announced it in 2015, and so it's about time for it to go forward," said Salem.
Other proposals include the installation of panic buttons and obligatory inspections by the Taxi Bureau.
Before the rules come into effect they will have be approved by city council, and by the agglomeration council.
The Steelworkers' Union, which represents about 3,000 taxi drivers in Montreal, supports the idea with certain conditions.
"I think it's a great idea," said Jean-Paul Wilson. "But we will wait until the city helps us pay for the installation."
Many drivers agree, saying having cameras and panic buttons could be very expensive if they had to pay for them on their own.