President Donald Trump's administration is expected to announce its decision as early as Friday, the official said, speaking on condition of anonymity.
Shortly before leaving office, former U.S. President Barack Obama temporarily eased penalties that had been in place for two decades against the African nation. In July, the Trump administration postponed for three months a decision on whether to remove the sanctions completely, setting up an Oct. 12 deadline.
Lifting the sanctions, which is opposed by some human rights advocates, would suspend a trade embargo, unfreeze assets and remove financial restrictions that have hobbled the Sudanese economy.
It will also mark a major turnaround for the government of President Omar Hassan al-Bashir, who once played host to Osama bin Laden and is wanted by the International Criminal Court on charges of orchestrating genocide in Darfur.
Sudan will remain, for now, on the U.S. list of state sponsors of terrorism, alongside Iran and Syria.
But the sanctions decision reflects a U.S. assessment that Sudan has made progress in meeting Washington's demands, including cooperation on counter-terrorism, working to resolve internal conflicts and allowing more humanitarian aid into Darfur and other rebellious border areas.
The White House declined comment. The State Department did not immediately respond to a request for comment.
Rights groups raised concerns that it would be premature to remove sanctions.
"It's a serious mistake for these sanctions to be lifted permanently when Sudan has made no progress on human rights," said Andrea Prasow, deputy director of the Washington office of Human Rights Watch. "A government that continues to indiscriminately bomb its own population and imprison human rights activists shouldn't be rewarded."
Speaking before word of the U.S. decision, Al-Buraq al-Nazir al-Warraq, executive manager of the Sudanese Observatory for Human Rights, a group suspended by the government, said taking away sanctions could "pave the way" for further rights abuse by Sudan's government.
The United States first imposed sanctions on Sudan in 1997, including a trade embargo and blocking the government's assets, for human rights violations and terrorism concerns.
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