It would support the UK government's plan to create the best broadband network in Europe by 2015.
This announcement comes as regulator Ofcom reveals that less than 1% of UK homes have a super-fast broadband connection.
The 1Gb trial in Kesgrave, Suffolk, will begin early next year and is intended to demonstrate the speed capabilities of BT's fibre-to-the-home (FTTH) technology.
The announcement comes ahead of a speech on the issue from Culture Secretary Jeremy Hunt.
The government is set to provide £830m for firms willing to offer fast broadband services in rural areas, which it will provide "over the course of this parliament and the next".
Under current plans, its fibre will extend to 66% of the UK.