Sir Michael is expected to say: "Parents, whatever their circumstances, want their children to access good quality childcare and get a good early education that sets them up well for statutory schooling.
"Yet too many providers are not good enough, particularly in the most deprived areas. We must be tougher on weak settings.
"From September 2013, nurseries and pre-schools judged less than good will need to improve rapidly. I want the new designation of 'requires improvement' to act as a catalyst to get all early years providers to good as soon as possible.
"We'll encourage providers that are good or outstanding to support weaker settings. We know that the best schools are joining forces and we anticipate that this will happen in the early years."
Ofsted says it is still considering plans for inspection of childminder agencies, and is not yet making proposals about early re-inspection of childminders.
Last September the "satisfactory" rating used by inspectors for school inspections was scrapped, and replaced with "requires improvement", a move Ofsted said was intended to raise the bar on school standards.
Schools judged to require improvement at two consecutive inspections, and still not providing a good education at the third, are now likely be placed in special measures.
The move caused upset among head teachers' unions as it is likely to leave more schools in special measures.
The consultation on today's proposals is due to close on May 24.