President Barack Obama pledged to shut the facility -- reviled by critics as a stain on America's moral character that helped fuel anti-US jihadist propaganda -- when he took office in 2009, but his efforts have failed and time is quickly ticking down on his presidency.
"We found homes for the 17" detainees, the official told AFP yesterday, speaking on condition of anonymity, noting that several countries had agreed to take the men.
Their transfer will likely come in mid-January, soon after a 30-day congressional notification period, and will see the notorious detention centre's population drop to just 90.
Since 2002, a total of 779 detainees have been held at Guantanamo in connection with America's "war on terror."
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The 17 who have been approved for transfer come from a group of 48 men that the US military has already agreed should be released, providing suitable homes can be found for them.
"It would also signal that President Obama is serious about closing Guantanamo on his watch, which is crucial since the next administration may try to keep it open indefinitely."
Guantanamo Bay sits on the southeastern tip of Cuba but is completely fenced off from the communist island.
Inmates are kept without recourse to regular US legal processes and some likely will die in prison without ever being convicted of a crime.