"Land has become one of the most critical factors in achieving redress for the wrongs of the past. In this regard, the regulation of land holdings bill will be submitted to parliament this year," Zuma said.
The announcement of the plan comes two decades after the end of racial apartheid in South Africa, with land currently concentrated in the hands of a largely white minority.
Implementing land reform is still a key issue in the country, where the government is under increasing pressure to put more land in the hands of South Africa's black majority.
According to Zuma, local farmers would be unable to own more than 12,000 hectares of land in the future, while foreigners would only be allowed to lease property for between 30 and 50 years.
The proposal flies in the face of South African farmers who have repeatedly argued that smaller plots of land would not be commercially feasible.
The land reform plan was first announced during Zuma's state of the nation address at the parliament on Thursday, which saw leftist MPs scuffle with security.
