A steady-state 2D model is developed for a multichannel membrane reactor (MCMR) to produce pure hydrogen. The model includes one reforming channel coupled with a PdAg membrane to produce H2 and one combustion channel to generate the heat needed for the reforming. Both isothermal and non-isothermal simulations are applied in designing a laboratory-scale proof-of-concept reactor. Isothermal sensitivity analysis indicates parameter adjustments practically available to improve reactor performance. In non-isothermal simulations, catalyst layer thickness and kinetic pre-exponential factor are varied along the reactor length. Predictions indicate that the reforming methane conversion increased from 74?% to 91?%, while avoiding hot spots. Compared with other membrane reactors, the MCMR has the potential for one to two orders of magnitude higher H2 production per reactor volume and per mass of catalyst.