Privately-run Bourn Hall in Peterborough hopes its scheme will tackle the shortage of sperm donors, as well as helping those struggling to conceive.
The new offering comes following research by the clinic that showed the biggest motivator for donating was knowing someone that was having a problem conceiving.
"We were the first clinic to introduce sperm freezing and we have our own sperm bank but demand is rising and there is a national shortage," said Dr Mike Macnamee, chief executive of Bourn Hall.
"When a couple comes to the clinic for treatment and testing reveals that a man has 'super sperm' [defined as 'good quality sperm' with a high chance of conception], then we offer them free IVF treatment in return for sperm donation," Dr Macnamee continued.
"The recent study we ran indicated that altruism is a powerful motivator so we have decided to extend this offer to allow donors not requiring help themselves to nominate someone they know for free IVF treatment."
The study also showed the second biggest motivator was to be paid - so those not taking up free IVF treatment will receive £35 compensation for each sample.
Dr Macnamee added: "Donors have no legal or moral obligation to children resulting from donation, however, we have found that men who are prepared to donate are often relaxed about the thought of a young man or woman that they have helped bring into the world, later getting in touch.
"They feel it is a way they can make a big difference to someone else's life."
Sperm donation through clinics is strictly regulated in the UK to ensure potential donors are fully aware of the implications and only high quality sperm is accepted.
Donors should be in good health and aged 18 to 40.
A single cycle of IVF treatment carried out by a private clinic costs £5,000 or more.
To for more information on how to donate at Bourn Hall Clinic, visit: www.becomeadonor.co.uk.