April 30 (Reuters) - The U.S. Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug, the Associated Press reported on Tuesday, citing five people familiar with the matter.

The agency's proposal, which must be reviewed by the White House Office of Management and Budget, could mark the biggest change in federal cannabis policy in 40 years.

However, it would not legalize marijuana outright for recreational use, according to the report.

Under the move, the DEA is expected to recommend reclassifying cannabis as a schedule III substance, the report said.

The DEA did not immediately respond to a Reuters request for comment. (Reporting by Leroy Leo in Bengaluru; Editing by Shinjini Ganguli and Shounak Dasgupta)