"It is a new day in South Carolina, a day we can all be proud of, a day that truly brings us all together as we continue to heal, as one people and one state," Haley said in a statement after the State House of Representatives voted overwhelmingly to remove the flag.
Last month, after a White man shot down several black people inside a historic church, Halley had taken the courageous step to remove the controversial Confederate flag from the State Capitol - a move which was welcomed across the nation including the US President, Barack Obama.
The flag may soon no longer fly at the State Capitol, but there is still unfinished business in confronting and acting on the inequalities that still exist in our country" Hillary Clinton, the Democratic presidential candidate, said.
"We can't hide from the hard truths about race and justice. We must do everything in our power to have the courage to name them and change them," she said.
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Local media reported that confederate flag could be removed from the State House by tomorrow.
Haley is expected to sign the bill - now passed by both chambers of the State legislature today.