The move came after three weeks of protests over corruption and public spending which marred the Confederations Cup, a dress rehearsal for next year's football World Cup, which will also be held in Brazil.
The proposal for a plebiscite was delivered to senate and parliamentary president Renan Calheiros by Justice Minister Jose Eduardo Cardozo and vice president, Michel Temer, state news service Senado said.
"Calheiros announced he would act so that any changes resulting from the referendum take effect from (October) 2013," a year before presidential elections are to be held, Senado said.
"The executive is merely making a simple suggestion," Temer told reporters. "It is parliament which will oversee (the process) from the start through to the conclusion."
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The protests began in Sao Paulo and Rio de Janeiro over hikes in public transport fares but mushroomed into demands for improvements in crumbling public services and for an end to rampant corruption.
Some 1.5 million Brazilians took part in the protests at their height.
Leftist leader Rousseff last week proposed a national pact with state governors to boost public services and guarantee a balanced budget.
Parliament reserves the right to call a referendum and to implement any resulting political reforms.
Rousseff has a majority in the legislature but some sections of that broad support are not always loyal.