The decree may be issued on the very first day of Trump's return to the White House, the publication said.
Transgender persons will be demobilized for health reasons, which will mean they are unfit for service, the newspaper noted.
The publication emphasized, citing an unnamed source familiar with Trump's plans, that the US Army was currently experiencing problems with recruiting new servicemen.
"Only the Marine Corps is hitting its numbers for recruitment and some people who will be affected are in very senior positions," a source familiar with Trump’s plans told the publication.
According to the newspaper, Trump's new order will also not allow transgender people to enlist in the military.
*LGBT is an extremist movement banned in Russia.