Current energy storage and return prosthetic feet only marginally reduce the cost of amputee locomotion compared with basic solid ankle cushioned heel feet, possibly due to their lack of push-off at the end of stance. To the best of our knowledge, a prosthetic ankle that utilizes a hydraulic variable displacement actuator (VDA) to improve push-off performance has not previously been proposed. Therefore, here we report a design optimization and simulation feasibility study for a VDA-based prosthetic ankle. The proposed device stores the eccentric ankle work done from heel strike to maximum dorsiflexion in a hydraulic accumulator and then returns the stored energy to power push-off. Optimization was used to establish the best spring characteristic and gear ratio between ankle and VDA. The corresponding simulations show that, in level walking, normal push-off is achieved and, per gait cycle, the energy stored in the accumulator increases by 22% of the requirements for normal push-off. Although the results are promising, there are many unanswered questions and, for this approach to be a success, a new miniature, low-losses, and lightweight VDA would be required that is half the size of the smallest commercially available device.