The Pentagon has submitted a plan to the US Congress to close the detention facility at Guantanamo Bay and to move remaining prisoners to a new facility in the United States.
Around 91 detainees are currently held at the facility located in Cuba, which was established in the wake of the September 11 2001 attacks.
The proposal would involve transferring up to 35 prisoners out of US custody to other countries and moving between 30 and 60 others into a new detention facility in the US.
Congress had requested a report from the Pentagon on closing Guantanamo Bay and had set today as the deadline for receipt of that plan.
Senior administration officials said they have identified 13 suitable locations in the continental United States that would be suitable for a new detention facility.
They said there would be a one-off cost of between $290-$475m (€260-€430m) to close down Guantanamo Bay, construct a new facility and move all prisoners there.
But they added that a new facility would cost about $65-$85m (€59-€77m) a year less to run than the current Guantanamo detention centre.
Officials are confident they can transfer up to 35 prisoners out of Guantanamo to other countries within the next few months, with a plan to reduce the prison population there to 60 by the end of this year.
The report sent to Congress does not identify the 13 potential sites and Department of Defence officials have not visited all locations, as there are restrictions placed on them by existing legislation, preventing detailed planning.
However, senior administration officials said they hoped the publication of the plan today would open lines of communication with the Congress, which would ultimately grant them the authority to proceed with their plans.
Closing Guantanamo Bay was an election promise of President Barack Obama and he is still anxious to do this in the remaining months in office.
He views it as an ongoing recruitment and propaganda tool for terrorists, which a spokesman said "is a negative symbol for national security, hurts us with our allies and inspires jihadists".
A senior official said the United States did not have any security concerns about holding 30-60 detainees on US soil, and added that their rights and conditions would not change at a new location.
They would still be held under the 2002 legislation, and would not enjoy the same rights as US prisoners who have been convicted in US courts.
The four-part plan needs to be signed off by Congress before a new site can be located and construction can begin.
A spokesperson for President Obama said he hoped to be able to get it done this year "because it's the responsible thing to do", adding that it would "take it off the plate of the next President".
A number of candidates running for president have already said that they would reverse any plans to close Guantanamo Bay.
