In an interview with Taiwan's Independence Morning Post, the exiled Tibetan leader said he would like to send a representative to the island to set up an office for religious and cultural exchanges.
``Many religious groups and individuals have expressed in the past their wish to help Tibetan refugees and students, but there is not such a channel,'' the Dalai Lama said.
He said he wanted to ``establish a reasonable relationship'' with the Taiwan authorities.
``Apart from the major purpose of religious exchanges, I would like to eradicate some misunderstandings between Taiwan and Tibetan people,'' he said.
Taiwan's cabinet-level Mongolian and Tibetan Commission has been at odds with the Dalai Lama, criticising him as a ``secessionist''.
The Dalai Lama also acknowledged that he had written to Taiwan President Lee Teng-hui and had received a reply.
Meanwhile, warning that the Dalai Lama had ulterior motives in visiting Taiwan, China urged the island not to get caught up in what it called the exiled Tibetan leader's political plots.
``The Taiwan authorities should recognise clearly all of the Dalai Lama's activities and his political goals,'' foreign ministry spokesman Cui Tiankai said.
A Taiwan-based cross-straits watcher Hu Fu said the visit was clearly politically motivated.
The Dalai Lama had admitted that he had exchanged views with the president and it was obvious that Mr Lee had approved the ``religious visit'', the National Taiwan University professor said.