US officials are considering the move based on long-standing concerns that China's government could use the companies equipment to spy on or disrupt US telecommunications networks, the Wall Street Journal reported, citing unidentified sources familiar with the issue.
The restrictions could be imposed in a White House executive order, possibly in the next few weeks, the newspaper reported.
"Given the security concerns associated with these devices, as expressed by senior US intelligence officials, it was not prudent for the Department’s exchange services to continue selling these products to our personnel," Major Dave Eastburn told Stars and Stripes.
Huawei, the world’s biggest supplier of wireless equipment and No. 3 vendor of smartphones, has been largely shut out of the US market since a 2012 congressional report said its equipment could be used for spying, according to the Wall Street Journal report.
Huawei and ZTE deny that their equipment poses a security risk.