Variable-diameter wheels balance the high mobility and limited volume of a planetary rover. Moreover, these wheels allow a rover to adjust its body attitude to adapt to rough terrains. These functions are achieved through the expansion–retraction motion of the variable-diameter mechanisms in the wheels. Thus, the traditional wheel design focuses on these mechanisms. To further facilitate its application, we propose a new concept variable-diameter wheel that considers the mechanism characteristics and wheel performances. This new wheel configuration is presented along with the corresponding transmission system, design, and analysis methods. Kinematic equations of the mechanism were established and then applied to synthesize the wheel dimensions. The load–deflection relationship of the wheels was analytically derived by developing a modified pseudo-rigid-body model (PRBM). Finite element analysis (FEA) simulations were performed to validate the design and analysis. In conclusion, the proposed novel wheel is extremely beneficial for rough-terrain locomotion systems. Furthermore, the design and analysis approaches used in this study are applicable for other expandable wheels.