Commerce Department assistant secretary for communications and information Lawrence Strickling told AFP that the proposal from the Internet Corporation for Assigned Names and Numbers (ICANN) meets the criteria set by the US administration.
The plan aims to maintain Internet governance under a "multi-stakeholder" model which avoids control of the online ecosystem by any single governmental body.
"The Internet's multi-stakeholder community has risen to the challenge we gave them to develop a transition proposal that would ensure the Internet's domain name system will continue to operate as seamlessly as it currently does," Strickling said.
The plan comes in response to the US government's March 2014 announcement that it would transition "stewardship" of online domain name system technical functions from the Commerce Department to a body that would fairly represent all parties with interests in a vibrant and healthy Internet.
Motivation behind the transition is to "preserve a free and open Internet," according to Strickling.
Concern has been expressed over the years that a perception that the United States is holding the reins of the Internet could prompt other countries to form their regional "domains," creating a potential for fragmentation.