We report on a theoretical study of the pp → pΛK + and pp → pΣ 0 K + reactions near threshold using a chiral dynamical approach. The production process is described by single-pion and singlekaon exchange. The final state interactions of nucleon-hyperon, K-hyperon and K-nucleon systems are also taken into account. We show that our model leads to a fair description of the experimental data on the total cross section of the pp → pΛK + and pp → pΣ 0 K + reactions. We find that the experimental observed strong suppression of Σ 0 production compared to Λ production at the same excess energy can be explained. However, ignorance of phases between some amplitudes does not allow to properly account for the nucleon-hyperon final state interaction for the pp → pΣ 0 K + reaction. We also demonstrate that the invariant mass distribution and the Dalitz plot provide direct information about the Λ and Σ 0 production mechanism, and may be tested by experiments at COSY or HIRFL-CSR.