Secretary of State Hillary Rodham Clinton will notify Congress of her intent today, according to a news agency sources. A court had given her until October 1 to make a decision.
The officials spoke on condition of anonymity because they were not authorized to speak about the matter.
The decision looks set to end years of high-profile campaigning from the Mujahedeen-e-Khalq, and infuriate Iran.
The MEK helped Islamic clerics overthrow Iran's shah before fighting against the Iranian regime. It fought in the 1980s alongside Saddam's forces in the Iran-Iraq war. It disarmed after the US invasion of Iraq in 2003.
Washington: US officials say the Obama administration will tell Congress that it will remove an Iranian militant group formerly allied with Iraqi President Saddam Hussein from the US terrorism list.
First Published: Friday, September 21, 2012, 22:20