The speech marks a shift from the rather cooler attitude towards the single currency displayed by government ministers during recent months, which had worried some big companies.
Mr Byers is concerned that foreign investment in the UK could dry up if it fails to signal its intention to join Europe's single currency, the euro.
"We will consider if the five tests have been met early in the next Parliament. If the economic tests are satisfied then we could join a successful single currency if that is what the Government, Parliament and the people decide," the Trade Secretary said.
Mr Byers made his comments in a keynote speech at a conference of Britain in Europe, a pro-European lobby group which has the support of Prime Minister Tony Blair.
The speech marks a shift from the rather cooler attitude towards the single currency displayed by government ministers during recent months, which had worried some big companies.
The event was being hosted by City firm KPMG, which also published a report suggesting that a majority of eurozone firms believe that monetary union will increase their profits, but warns about the huge costs of adopting the euro.
Nick Herbert, of Business for Sterling, warned that joining the euro would "threaten the competitive economic environment" that had contributed to Britain's strong economic performance.
He told the BBC that inward investment was pouring into Britain and the financial sector was flourishing outside the "volatile" single currency.
Meanwhile, the euro fell to a record low against the pound, reaching 60.33 pence on Thursday. It was the pound's highest level in ten years.
Euro timetable
Mr Byers' timetable for the UK joining Europe's Economic and Monetary Union is broadly in line with earlier government statements.
The decision on the euro will not come during this parliament, or immediately after the election should Labour win.
"It would be wrong for any government to bounce the British people into a referendum on the euro in the immediate aftermath of the next general election. A clear distinction must be drawn between the two," Mr Byers said.
Rather, Mr Byers says that the government plans to decide on monetary union "early" in the next parliament.
Lord Marshall, chairman of British Airways and head of the Britain in Europe campaign, said he was pleased that the government had recognised the importance of Britain "playing a major role in Europe" and said he recognised the need to "maintain a degree of flexibility" about timing.
Big industry threats
The key element of Mr Byers' speech is a warning about the dangers of staying outside the euro for too long.
The minister says that big foreign firms have voiced their disquiet about the UK's stance towards the euro.
Japanese engineering company Komatsu said it was considering building a new plant in the eurozone and closing one in England because of the currency risk.
The trade secretary has re-emphasised that any decision will depend on five economics tests for euro convergence, as laid out by Chancellor Gordon Brown.
But the government believes a euro timetable would reassure those who worry Britain is backing away from the single currency.
Several union leaders welcomed Mr Byers approach. John Edmonds, general secretary of the GMB, said: "At last the government is putting the case for euro membership. Manufacturing industry desperately needs an early decision on this."
Tory criticism
Francis Maude, the opposition Conservatives' spokesman on finance, said that Mr Byers' speech would show that Labour was determined "to scrap the pound at its earliest opportunity."
He told Radio 4's Today programme that there was no reason why Britain could not continue to prosper outside the single currency.
Mr Maude predicted that if Labour were re-elected, all the economic conditions would "miraculously be found to have been met".
Euro benefits - and costs
Business advisers KPMG, meanwhile, has published a report into the euro to coincide with the conference.
According to its survey, the cost to British business of scrapping the pound and joining the European single currency could be as high as £100bn.
The changeover could cost businesses employing more than 5,000 people an average of £34m each.
However, a majority of firms - 60% - believes that in the long run joining the single currency would increase profits.
KPMG say the cost would result from the huge outlay needed on computer systems and the impact of lower prices as companies have to harmonise what they charge across the eurozone countries.