Home Secretary Priti Patel is seeking to declare the whole of Palestinian militant group Hamas as a terrorist organisation.
Days after the terrorism threat level was raised, Ms Patel said supporters of the group could face up to 14 years in prison.
Hamas' militant wing was proscribed as a terrorist group in March 2001 but its political arm was not covered by the ban.
Actions expected to be outlawed from November 26 would include arranging meetings for the group, flying their flag or wearing clothing that it is seen to support them.
Speaking at the Heritage Foundation in Washington, Ms Patel said: "Hamas has significant terrorist capability, including access to extensive and sophisticated weaponry as well as terrorist training facilities, and it has long been involved in significant terrorist violence.
"Hamas commits, participates, prepares for and promotes and encourages terrorism. If we tolerate extremism, it will erode the rock of security."
She highlighted it is an important step to protect the Jewish community and described the group as "fundamentally and rabidly Anti-semitic".
Ms Patel said: "Antisemitism is an enduring evil which I will never tolerate. Jewish people routinely feel unsafe - at school, in the streets, when they worship, in their homes, and online.
"This step will strengthen the case against anyone who waves a Hamas flag in the United Kingdom, an act that is bound to make Jewish people feel unsafe."
The move will be debated in Parliament next week and could come into force before the end of the month.
In a statement, Hamas said: "Unfortunately, the UK continues with its aggression against the Palestinian people.
"The UK Government should have apologised for its historic sin against the Palestinian people in the shameless Balfour Declaration and the British mandate that handed Palestine to the Israeli occupation.
"Now, the UK Government sides with the aggressor against the victim."
Foreign Secretary Liz Truss expressed her support for the move, tweeting: “Hamas will be proscribed as a terrorist organisation.
"Important announcement by [Priti Patel] that will help tackle the scourge of antisemitism.”
The UK’s terrorism threat level has been raised after two attacks in the space of a month.
It is now listed as “severe”, which means an attack is “highly likely”.
