The change will cover the entirety of the Palestinian militant group, including its political wings.
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Home Secretary Priti Patel has announced she is seeking to declare the whole of Palestinian militant group Hamas a terrorist organisation.
The military wing of the group which controls Gaza is already proscribed a terrorist organisation by the UK.
However, the change will also cover the Islamist movement’s political wing.
It is a criminal offence to belong to or invite support for a proscribed organisation or wear clothing which could be seen to support the group.
The penalty is a maximum of 10 years in prison and/or a fine.
Hamas has carried out hundreds of deadly attacks against Israel and fired thousands of rockets at it during years of hostilities between the two sides. Israel, along with Egypt, has hemmed in the Gaza Strip since Hamas took over in 2006 and waged a series of wars against it. Human rights groups have accused both sides of committing war crimes.
Ms Patel is expected to speak about the news on Friday in Washington and an order will be laid in Parliament to complete the process.
Announcing the move on Twitter, Ms Patel said: “Hamas has significant terrorist capability, including access to extensive and sophisticated weaponry, as well as terrorist training facilities.”
“This government is committed to tackling extremism and terrorism wherever it occurs,” she added.
In response, Hamas accused the UK of supporting “the aggressors at the expense of the victims”.
Israel welcomed the move as a “significant decision”.
Foreign affairs minister Yair Lapid said: “There is no legitimate part of a terrorist organisation, and any attempt to differentiate between parts of a terrorist organisation is artificial.”
Under the Terrorism Act 2000, the home secretary may proscribe an organisation if she believes it is concerned in terrorism.
Fifty-two other international terrorist organisations are already proscribed under the act.
Hamas is already designated a terrorist organisation by the US, the EU and other powers.
The group originally had a dual purpose of carrying out an armed struggle against Israel – led by its military wing, the Izzedine al-Qassam Brigades – and delivering social welfare programmes.
But after 2005, when Israel withdrew its troops and settlers from Gaza, Hamas has also engaged in the Palestinian political process. It won the legislative elections in 2006, before reinforcing its power in Gaza the following year by ousting the rival Fatah movement of President Mahmoud Abbas.