The Wall Street Journal has reported the Donald Trump administration is expected to designate Iran's Revolutionary Guards Corps (IRGC) as a terrorist organisation by Monday.
The Wall Street Journal quoted unnamed officials as the source of the planned decision, which had been contemplated for a long time.
The Revolutionary Guards are an elite military unit, which was formed after the 1979 Islamic Revolution. The Revolutionary Guards are dedicated to the protection of the clerical regime, unlike Iran's traditional military forces. The Revolutionary Guards have air, naval and sea units and are thought to have around 125,000 personnel.
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In addition to having considerable influence in Iran, the Revolutionary Guards have been accused of operating in Syria and having ties to the Hezbollah terrorist group in Lebanon. The Wall Street Journal reported US officials are bracing for the impact of the decision on the Revolutionary Guards, which the Pentagon and CIA had reservations about. US security officials worry the move to designate the Revolutionary Guards as a terrorist organisation will increase the risk of attacks against US troops.
The Trump administration had re-imposed tough sanctions on Iran last year, citing its sponsorship of terrorist groups and covert nuclear programmes.