This is the first time the Arvind Kejriwal government has set the deadline of executing the project in the city.
According to the Information Technology Department, 1,000 hotspots will be created across the capital city to provide free Wi-Fi facility in the first phase on a pilot basis.
An official said that Rs 25 crore has been proposed to fund the first phase of the project.
"Tender for executing the project will be awarded by December 2017. The IT department has set March 2018 as the deadline for the launch of its first phase," the official said.
Last month, Chief Minister Arvind Kejriwal had said the government was working on three-four models of providing free Wi-Fi facility and would soon take a decision.
In June, last year, the AAP government had announced that over 500 locations across East Delhi would be made high-speed Wi-fi zones by December 2016, allowing access to free internet till a pre-determined limit daily.
Providing free Wi-Fi across the national capital was one of the key poll promises of the Aam Aadmi Party.