In this letter, a novel mechanism of hybrid optical bistability is proposed by using nonlinear mechanism in the frequency domain. This device is based on electro-optical feedback through the fiber Bragg grating on piezoelectric transducer (PZT) to tune continuous wave (CW) fiber laser. The optical bistable characteristics for two manners of separately alternating input power and bias voltage are discussed. The smallest wavelength shift of the order of 0.001 nm needed to realize a switching process in this optical bistability device is estimated. The potential applications of this device in the optical fiber sensor technique are also discussed.