All Britain's 11million cats would have to be microchipped under Government plans.
The chips, containing the owner's name and address, will help ensure missing pets are returned to their homes.
The plan is one of a range of animal welfare measures to be put forward at the Conservative Party conference today.
A ban on keeping monkeys as pets and stopping live exports of farm animals for slaughter are also on the cards.
Hunters will be banned from importing endangered animals shot overseas – a measure promoted by Boris Johnson's girlfriend, Carrie Symonds.
The charity Cats Protection says around eight in ten strays taken in its adoption centres are not microchipped.
Environment Secretary Theresa Villiers said: 'The measures we are announcing will protect our animals in our homes, in agriculture, and in the wild.'
David Bowles of the RSPCA said mandatory microchipping was a positive step, even if enforcement could be difficult.
He added: 'It is vitally important in ensuring that if anything happens to them, if they are lost or stolen, or hit by a car, then they can be returned home.'
On the endangered animals ban, the RSPCA said: 'We welcome this move to banning the import and export of animals hunted as 'trophies' – we believe the killing of an animal purely as a hunting trophy cannot be classed as a sport.
'Recent public outcry over trophy hunting shows us there is no place for this in today's society.'
Compiled by Olalekan Adeleye