In this Master Thesis an innovative approach to bicycle design by introducing a steer-by-wire system is studied, where the traditional mechanical link between the handlebar and fork is replaced by servomotors, sensors, and a controller. The main goals of this research are the following: to begin with, a detailed model of the bicycle and the steer-by-wire system was set up in Simpack, a multibody system simulation software. In this phase, stability analyses are performed, and the need for a control strategy to resolve instabilities at lower forward speeds is highlighted. A linear, discrete time controller was developed in MATLAB-Simulink, and a co-simulation environment was set up between the two softwares to test the controller in conjunction with the bicycle model.