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My web hosting plan does not support public key authentication, however advice given in Public key authentication unsupported by web host. Method to avoid entering password? question suggests it may be possible to achieve using an SSH Daemon?

Is it possible to do and if so how?

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it would be unwise to do something that circumvents your web hosts restrictions, as it may get your account terminated - i still wonder why they disable public key auth but allow password auth – anthonysomerset Nov 1 '11 at 14:01
up vote 1 down vote accepted

If you have a pure webhosting plan, chances are high that your provider will not allow you to run your own SSH daemon. But you have to check that with your provider first.

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