The removal would be only provisional, officials said, and North Korea would be put back on the State Department's "state sponsors of terrorism" list if it doesn't comply with inspections of its nuclear facilities. The diplomats spoke on condition of anonymity because the administration has not yet announced the step.
The expected delisting comes as North Korea moves to restart a disabled nuclear reactor and takes other provocative actions, including expelling U.N. inspectors and test firing missiles. These steps in recent weeks have heightened tensions between Washington and Pyongyang and threatened a shaky disarmament agreement.
It also follows days of intense internal debate in Washington and consultations with U.S. negotiating partners China, South Korea, Russia and Japan. Tokyo had balked at the move because the North has not yet resolved issues related to its abduction of Japanese citizens.
Neither the White House nor the State Department would comment on the decision, which has been in the works since chief U.S. negotiator Christopher Hill returned from a trip to North Korea late last week.;
But earlier Friday, U.S. officials said they were trying to build a consensus among negotiating partners on the step as well as the inspection regime that Washington insists must accompany the delisting.
"We're continuing to work with our six-party partners," White House press secretary Dana Perino said, referring to China, Japan, Russia and South Korea, which along with the United States and North Korea make up the group of countries working on the deal.
Secretary of State Condoleezza Rice spoke on Friday with the foreign ministers of China, South Korea and Japan and was trying to reach her Russian counterpart, State Department spokesman Sean McCormack told reporters.