Michael Bloomberg is expected to ask the city council later on Monday to consider the new measures, saying they are necessary to protect workers.
New York's new mayor is avidly anti-smoking and, since taking office, has waged a concerted campaign against cigarettes.
He has just raised taxes on tobacco.
Now, Mayor Bloomberg has his sights on toughening the city's anti-smoking laws.
"No employer would allow their employees to work in a place with asbestos in the air," he said.
"This is just as dangerous and that's why we should stop it now."
Profitable move
Mayor Bloomberg pointed to California as proof that a ban would not cause economic damage.
"All of the evidence suggests that in California, where they did this, that actually the patronage of restaurants and bars - the amount of money spent in them - goes up, not down," he said.
Mayer Bloomberg's predecessor, Rudy Giuliani, banned cigarettes in all restaurants with more than 35 seats.
But Mayor Bloomberg now wants a blanket ban. Some 13,000 establishments would be affected by the move.
The restaurant industry is expected to oppose the plan, arguing the city has already some of the strictest smoking laws in the country.
State restrictions
Most states have some level of restrictions on public smoking.
In addition to California, Delaware and several municipalities, including El Paso, Texas, enforce total bans in bars and restaurants.
Maine, Utah and Vermont ban smoking in restaurants but not bars.
Across America, smokers are becoming increasingly marginalised - in New York, they may soon have few places to hide.