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http://www.bbc.com/news/world-us-canada-36628288US officials say the Pentagon will lift its ban on openly transgender service personnel next month.
Defence Secretary Ash Carter has called the regulation outdated and harmful to the military.
The disclosure has been welcomed by campaigners for transgender rights.
It comes after the US Army Secretary, Eric Fanning, formally took office. He is the first openly gay person to become the top civilian official in any branch of the American military.
The US military ended its ban on openly gay and lesbian service personnel in 2011.
The latest repeal would require each branch of the US military to implement new policies covering recruitment, housing and uniforms for transgender personnel, an official quoted by US media said.
What do you think? Step in the right direction towards acceptance or political pandering that weakens the fighting force?