The Department of Justice, which oversees the Drug Enforcement Administration, recommended that cannabis be classified as a so-called schedule three drug, with a moderate to low potential for physical and psychological dependence, instead of schedule one, which is reserved for drugs with a high potential for abuse.
The proposal is being sent to the White House Office of Management and Budget for review and to finalise the rule-making process, the source said.
The shift, however, would not legalise marijuana outright for recreational use, according to AP.