Sources say the additional responsibility for the National Investigation Agency (NIA) would be part of the proposed anti-human trafficking law unveiled by Maneka Gandhi last year.
The move will also require amending the law that gave birth to the counter-terrorism agency -- the National Investigation Act, 2008.
The Draft Trafficking of Persons (Prevention, Protection and Rehabilitation) Bill, 2016, proposed setting up a National Bureau on Trafficking in Person for "prevention, investigation of the trafficking of persons cases and protection of the victims of trafficking" -- a role which could be performed by the NIA, sources said.
Another official said that "a cell within NIA" could be probing human trafficking cases.
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After the Union Cabinet gives its approval, the draft bill will be tabled before Parliament.
"Traffickers enjoy immunity because local police agencies are not able to probe inter-state or cross-border crimes. We require a nodal agency as 80-90 per cent of trafficking cases span across various states," said President of NGO Shakti Vahini, Ravi Kant, explaining why activists have been seeking a central body to probe human trade.
The NIA was set up by the previous UPA government in 2009 to probe terrorist activities in the aftermath of the 2008 Mumbai attacks, which killed 166 people.
As per the National Investigation Act, the anti-terror body is empowered to probe offences under eight specified laws, including the Atomic Energy Act 1962, the Unlawful Activities (Prevention) Act 1967, and the Anti-Hijacking Act 1982.
The proposed anti-human trafficking legislation will be independent of the existing law on trafficking in relation to prostitution -- Immoral Traffic (Prevention) Act, 1956 -- while a section of the civil society has sought an umbrella law.
The punishment for offences in the former category is rigorous imprisonment between 7 and 10 years and a fine of not less than Rs 1 lakh, while aggravated forms of trafficking will invite a jail term of between 10 years and life imprisonment and a fine of not less than Rs 5 lakh.
Aggravated trafficking will include trafficking of children, transgenders, differently-abled, pregnant women and those which involve use of drugs and alcohol.
There is also a provision for a national committee as well as a central fund for the relief and rehabilitation services for the victims.