The Hizb-ut Tahrir Islamist group is set to be banned, Home Secretary James Cleverly has announced.
While the action technically requires approval from parliament, Labour has said they back the move.
Announcing the move, Mr Cleverly said Hizb ut-Tahrir is "antisemitic" and "actively promotes and encourages terrorism".
The change has been made under the Terrorism Act 2000, which was previously used to proscribe the likes of Hamas.
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The government states that proscription makes it an offence to belong to or invite support of a group, arrange a meeting in support of a group, or wear clothing or carry articles in public that "arouse reasonable suspicion that an individual is a member or supporter of the proscribed organisation".
It adds: "The penalties for proscription offences are a maximum of 10 years in prison and/or a fine."
Mr Cleverly said: "Hizb ut-Tahrir is an antisemitic organisation that actively promotes and encourages terrorism, including praising and celebrating the appalling 7 October attacks.
"Proscribing this terrorist group will ensure that anyone who belongs to and invites support for them will face consequences. It will curb Hizb ut-Tahrir's ability to operate as it currently does."
Hizb ut-Tahrir was one of the groups which organised protests on 21 October last year, alongside a demonstration by the Palestine Solidarity Campaign.
At the time, the Metropolitan Police said - despite identifying a man chanting "jihad, jihad" - they had "not identified any offences arising from the specific clip".
A review of the group was subsequently launched by the then home secretary Suella Braverman.
Hizb ut-Tahrir has already been banned in many Arab nations, as well as in Germany and China.
According to the Home Office, it was founded in 1953 "with a long-term goal of establishing a Caliphate ruled under Islamic law".
"While their headquarters are in Lebanon, the group operates in at least 32 countries including the UK, United States, Canada and Australia," the Home Office guidance adds.
Both the global and British branches of Hizb ut-Tahrir are set to be proscribed.
Yvette Cooper, Labour's shadow home secretary, said: "There have long been serious concerns about Hizb ut-Tahrir, which have been exacerbated in light of Hamas' barbaric terrorist attack on Israel on 7 October.
"It is right that the government has looked urgently at the evidence and intelligence information available to them about the threat posed by Hizb ut-Tahrir, and we welcome and support the decision to proscribe them.
"Those who incite violence and promote or glorify terrorism have no place on Britain's streets and must face the full force of the law."
Security minister Tom Tugendhat added: "Hizb ut-Tahrir clearly encourage and promote terrorism.
"Their celebration of Hamas' appalling attacks on Israel, going so far as to call the terrorists who raped and murdered Israeli citizens 'heroes', is disgraceful.
"We stand firmly against antisemitism and hatred against the Jewish community in the UK."