The 48-year-old actor told the Evening Herald that he is hoping to meet with show producers at the beginning of next year to discuss the idea.
Kennedy, who is best known for playing Weatherfield's Curly Watts, said that he would embrace the opportunity to work in Dublin because he has an Irish heritage.
He commented: "I would love to do Fair City and hopefully something might materialise down the line. If I got a part in it, I'd be happy to move [to Ireland] with my family for a while.
"I don't get to see it too often, but I would love to act in it - I think it's a great show and it would be a great opportunity for me.
"My mum was born in Dublin city, my grandparents are Irish, and I have a ton of cousins and relatives living in Drogheda, who used to live in Artane. The fruition of that is that I'd like to come back to my spiritual home some day."
Recently-released figures revealed that Fair City is the most-watched soap in Ireland, beating UK rivals Coronation Street and EastEnders.
> Kennedy: 'I've discussed Corrie return'