When photons from distant galaxies and stars pass through our neighboring environment, the wavelengths of the photons would be shifted by our local gravitational potential. This local gravitational redshift effect can potentially have an impact on the measurement of cosmological distance–redshift relation. Using available supernovae data, Wojtak, Davis and Wiis [J. Cosmol. Astropart. Phys. 2015 (2015) 025] found seemingly large biases of cosmological parameters for some extended models (nonflat [Formula: see text]CDM, [Formula: see text]CDM, etc.). Huang [Phys. Rev. D 91 (2015) 121301] pointed out that, however, the biases can be reduced to a negligible level if cosmic microwave background (CMB) data are added to break the strong degeneracy between parameters in the extended models. In this paper, we forecast the cosmological bias due to local gravitational redshifts for a future WFIRST-like supernovae survey. We find that the local gravitational redshift effect remains negligible, provided that CMB data or some future redshift survey data are added to break the degeneracy between parameters.