Israeli-based engineer Izhar Gafni has developed the vehicle where everything apart from the brakes and chain is cardboard - including the seat.
He claims it is durable, waterproof and costs very little to produce, the Daily Mail reported.
Gafni also has financial backing from a company called ERB to manage all the business and financial aspects of this project.
A spokesman for ERB said the cardboard bicycle can withstand water and humidity.
He added that the bike looks like it is made out of hard lightweight polymer, but is stronger then carbon fibre and can carry riders weighing up to 220 kilogrammes.
The current prototype, the third, is known as Alfa and is made of a 100 per cent recycled materials and weighs just 9 kilos.
It is covered with a waterproof resin then painted and comes with the option of an electric motor.
Izhar got the idea after he heard about a man who had built a cardboard canoe.
He said thinking about a canoe which was waterproof and could hold a man, made him imagine a bike.
"Like Henry Ford who made the car available to anybody, this bike is going to be cheap and available to any child in the world, including children in Africa who walk dozens of miles to school everyday," he was quoted as saying by the paper.
