"The Periodic Review Board, by consensus, determined that continued law of war detention of the detainee is no longer necessary to protect against a continuing significant threat to the security of the United States," the review broad said in a filing on Friday.
The review board suggested sending Qahtani to a mental health care facility in Saudi Arabia.
US media reported that the Biden administration is expected to send Qahtani to Saudi Arabia as early as March.
Qahtani was reportedly tortured by US military interrogators at Guantanamo Bay and a senior US defense official determined he could not be prosecuted due to how he was initially treated.
A Navy doctor suggested last year that Qahtani, who spent about 20 years in Guantanamo Bay, should be transferred since he would not receive the medical treatment he needed at the naval base and the detainee was considered too impaired to pose a threat in the future, according to media reports.