Labour MSP Dr Richard Simpson, shadow public health minister, said he would ask members of the education and children's committee to investigate the problem when Holyrood reconvened next month.
Daniel, 17, an apprentice mechanic from Dunfermline in Fife, jumped off the Forth Road Bridge near Edinburgh after talking on the video chat service Skype with someone he believed was a girl of the same age.
In fact, he was communicating with blackmailers who threatened to show footage to his family unless he paid them, according to his mother.
Following his death, police and cyber security experts warned young people were at serious risk of online extortion.
Mr Simpson, a former psychiatrist who represents mid-Scotland and Fife, said the issue was a growing concern for children, parents and grandparents across the country.
"Cyberbullying is a serious issue. I have grandchildren myself of 15 and 10 and certainly the older one is very aware of it.
"Teenagers are texting all the time and they spend a great deal of time on social media. It's not just communication between children, but the worry is also about adults getting involved and exploiting children."
Mr Simpson added young victims of cyberbullying should be invited to address MSPs should an inquiry go ahead. The inquiry should also take evidence from representatives of internet providers, he said.
"It's a very difficult issue. Children and young people today are growing up in a new world and we have to make sure there are up-to-date measures to combat what is going on," he said.
"The thing about cyberbullying and online crime is that it is very hidden and I believe a parliamentary inquiry would open up the whole issue to scrutiny."
Earlier this month, Hannah Smith, 14, from Leicestershire, hanged herself after she was told to self-harm on the website ask.fm.
Prime Minister David Cameron has called for a boycott of "vile" websites. Daniel had been taunted on ask.fm, but his death is believed to be linked to the Skype conversations.
His mother said last week police had taken his laptop and established he had been speaking for several months to a girl he believed was from Illinois. "But whoever is behind this scam has manipulated the footage," she said at the time. "These people are clever and dangerous. I believe he didn't give them any money and I don't know how much they asked from him."
Shortly before killing himself on 15 July, Daniel asked the blackmailers via his laptop: "What can I do to stop you showing this to my family?" He was told to pay money into a certain bank account or he "would be better off dead".
On a Facebook page set up in October 2012, Daniel wrote he loved his family, friends and his apprenticeship. According to his page, he was involved in a number of networking groups where people shared Skype identities.
Scott Freeman, founder of Cybersmiles, said he was angry Daniel's death had not been prevented.
Mr Freeman had tried to have Westminster's Department of Education and the Child Exploitation and Online Protection Centre highlight the rising trend of financially-motivated online bullying in schools.
He said online extortion of young people was a growing problem. Last night, a Police Scotland spokesman said inquiries into Daniel's death were continuing.