If it comes into being, the proposed law will give statutory powers to the investigation agency specifically to look into corruption cases and prosecute offenders all over the country, highly placed official sources said.
As per the proposal, which is at a nascent stage, the law will be enacted close on the lines of the National Investigation Agency Act, 2008.
Sources said the Ministry of Personnel, Public Grievances and Pensions will soon hold a meeting with Ministry of Law and Justice and certain officials of the CBI to devise a road map for the legislation.
"The government is considering a proposal for giving statutory powers to CBI. Its main thrust is to minimize overlapping powers of state and central government investigating agencies," a senior Department of Personnel and Training (DoPT) official said.
However, the official said "no decision" has been taken by the Ministry on it as yet.
At present, the Central Bureau of Investigation functions under the Delhi Special Police Establishment (DSPE) Act. As per the Act, CBI requires consent from the state governments to probe and prosecute an official working under their control.
The proposal was also discussed by a Parliamentary Standing Committee which had in May this year recommended a legislation giving statutory powers to CBI for the purpose terming it as a "dire need".