The report, which could be released as soon as today, marks the culmination of a months-long investigation into a police department that federal officials have described as troubled and that commanded national attention after one of its officers shot and killed an unarmed black man, 18-year-old Michael Brown, last summer.
It chronicles discriminatory practices across the city's criminal justice system, detailing problems from initial encounters with patrol officers to treatment in the municipal court and jail.
The Justice Department investigation found that black motorists from 2012 to 2014 were more than twice as likely to be stopped and searched as whites, even though they were less likely to be found carrying contraband, according to a summary of the findings.
The review also found that blacks were 68 percent less likely than others to have their cases dismissed by a municipal court judge. And from April to September of last year, 95 per cent of people kept at the city jail for more than two days were black, it found.
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Overall, African Americans make up 67 per cent of Ferguson's population.
The officials spoke on condition of anonymity because they were not authorised to speak publicly before the report is made public.
The Justice Department began the civil rights investigation following the August killing of Brown, which set off weeks of protests. A separate report to be issued soon is expected to clear the officer, Darren Wilson, of federal civil rights charges.
The report provides direct evidence of racial bias among police officers and court workers, and details a criminal justice system that through the issuance of petty citations for infractions such as walking in the middle of the street, prioritises generating revenue from fines over public safety.