A party official said Keadilan members were keen for Anwar to stand in a possible election.
Khalid Ibrahim, the party treasurer, said: "As a party we propose his name, to be nominated as our president at our next elections in June."
Jailed for sodomy
In 1998 Anwar fell out with Mahathir Mohamad, Malaysia's then-premier, leaving office to head the Reformasi movement which staged anti-government protests demanding political reform.
He was jailed in 1999 on what he said were trumped up charges of corruption and sodomy.
Having served time for corruption, he was acquitted of sodomy and released from jail in September 2004.
But his corruption conviction was not overturned and his criminal record bars him from holding party or political office until April 2008.
The Malaysian government is expected to call an early general election by the end of this year, in which case Anwar would not be able to stand for parliament and would have to wait for the next election five years later.
Khalid said: "If there is a general election we want him to be there, and also to participate in the election."