'Bike Sense' will use a combination of colour, sound and touch inside the car to alert drivers to potential hazards before they see it.
JLR says the system will be able to distinguish between bicycles and motorbikes, and it will use lights and sounds the driver associates with danger to help prevent accidents.
LED lights in the cabin will let the driver know where the bike is, and a motorbike horn or bicycle bell sound will be played in the speaker nearest the bike.
Bike Sense will prioritise hazards when there are numerous cyclists, motorbikes or pedestrians around the car, and when the car is parked the door handle will light up and vibrate if there is a danger of opening the door into the path of a bike.
The system will also be able to identify hazards that are obscured by a stationary vehicle.
“Bike Sense takes us beyond the current technologies of hazard indicators and icons in wing mirrors, to optimising the location of light, sound and touch to enhance this intuition," said Wolfgang Epple, director of research and technology at JLR.
"This creates warnings that allow a faster cognitive reaction as they engage the brain’s instinctive responses.
"If you see the dashboard glowing red in your peripheral vision, you will be drawn to it and understand straight away that another road user is approaching that part of your vehicle,” he added.
With nearly 19,000 cyclists killed or injured on British roads every year, JLR think that Bike Sense will aid drivers' instinctive awareness of danger.