The move came after an investigation by The Daily Telegraph revealed that despite an appeal from the head of the Army, none of the thousands of soldiers returning this autumn would receive welcome home parades.
Nearly 13,000 troops are set to return from arduous six-month tours in Iraq and Afghanistan between now and November.
Not one local authority out of more than a dozen contacted by The Daily Telegraph was organising an event.
The Ministry of Defence finally moved to put pressure on town halls to give returning troops a proper reception and show that their brave work is recognised
Derek Twigg, the minister for veterans, said he would be writing to the Local Government Association (LGA). He said he wanted to "see what can be done to show troops that we value the job that they are doing for us".
Gerald Howarth, a Tory defence spokesman who has championed the idea of welcoming local troops home, said he was pleased at the Minister's response.
Mr Howarth, MP for Aldershot, Hants, worked with Rushmoor council to put up banners in the town to salute those returning from Afghanistan. He said: "There's no doubt that the Armed Forces, the Army and the Royal Air Force are under enormous pressure.
"Anything that can be done to let them know they are valued and respected is good news."
Last Friday, Gen Sir Richard Dannatt said: "How many councils have written to local battalions to ask when they are coming back from Iraq and whether they can give them a homecoming parade? The answer, I fear, is not high."
When The Daily Telegraph contacted local authorities in areas with large Army bases, such as Surrey and Wiltshire, it found that almost all offered support only when the military contacted them.
Sir Simon Milton, the LGA chairman, said: "Councils will do everything in their power to make sure that soldiers get a homecoming fit for heroes."
"While this is a matter for local discretion, some councils will want to ensure soldiers get the homecoming they deserve and recognise the sacrifices they have made.
Mike Rye, the Conservative leader of Enfield Council in north London, contacted regiments with local links after hearing Gen Dannatt's speech. He said the council would "do what it can to honour our troops".
Mr Rye told The Daily Telegraph: "I would say to other councils, 'You have a moral responsibility to honour those people who put their lives on the line for our country, whatever the cause."
The City of London is to hold a medal ceremony for more than 140 troops from the Somme Company on Oct 14 when they return from a six-month tour of duty in Afghanistan.
Lord Mayor John Stuttard, who will be hosting the event, said: "Our soldiers risk their lives for the values we all hold dear and the City is proud to welcome them home.
"Their sacrifice and dedication deserves the widest recognition and the covenant with our armed forces would be much strengthened if towns and cities across the UK could find public ways of saying 'thank you'."
