The Russian leader will become the highest profile target in the effort to impose costs on the Russian economy and Putin's inner circle in the wake of the Russian invasion of Ukraine.
Additional Russian officials are likely to be included, one of the sources said.
The US action follows reports the European Union plans to target Putin and Russian Foreign Minister Sergey Lavrov with sanctions.
US President Joe Biden has said sanctioning Putin has been an option under consideration, telling CNN's Kaitlan Collins on Thursday it was "on the table."
Read more on CNN here.
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