Diplomats have told reporters that a USA withdrawal from the 47-member council could come as early as Tuesday.
The US is expected to disengage with the UN Human Rights Council over anti-Israel bias, a senior US official, a diplomatic source and several activists tell CNN.
Whilst some European states and Australia have also criticised Item 7 in the past, the Trump administration has raised the prospect of the USA withdrawing from the council unless it is scrapped.
"If it fails to change", Haley continued, "then we must pursue the advancement of human rights outside of the council". Alongside his strong speech on the importance of girls' education, his commitment that the United Kingdom will vote against all resolutions in 2019 tabled under the infamous Item 7, which singles out Israel as the only country in the world to have its own agenda item, is an important victory for human rights. Nikki Haley has consistently voted against United Nations measures that were critical of Israel, and earlier this month publicly rebuked the organization for its call to end Trump's "zero tolerance" policy that separates families caught crossing the border illegally. Israel's ambassador in Geneva castigated the council for "spreading lies against Israel". National Security Adviser John Bolton has been a prominent critic of the council since its inception. She has also called for ways to expel members of the council that have poor human rights records themselves.
A full pullout by the USA would leave the council without one of its traditional defenders of human rights.
Haley threatened to pull out of the HRC a year ago, citing the body's "chronic anti-Israel bias".
The UN Human Rights Council (UNHRC) had mandated the creation of such a list in 2016 and has warned that business activity with Israeli entities over the pre-1967 lines can be considered criminal activity under worldwide law.
The move comes as the Trump administration is under intense criticism from business groups, human rights organizations and lawmakers from both parties over its recently imposed decision to separate children from parents who enter the USA illegally. A year ago, she denigrated it as a "forum for politics, hypocrisy and evasion", and threatened a US exit if the council did not kick out abusive regimes and remove Item 7, the standing resolution critical of Israel's treatment of Palestinians.