The deal, estimated to be worth $2-3 billion, has been approved by the State Department, the sources said.
The decision has been communicated to the Indian government and the manufacturer by the State Department on Saturday, according to the informed governmental sources.
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The sources, who requested anonymity as the deal has not been formally announced, said the sale of 22 predator drones being manufactured by General Atomics is "a game changer" for US-India relations as it operationalises the status of "major defence partner".
The designation of India being a "major defence partner" was decided by the previous Obama Administration, and formally approved by the Congress.
The State Department and the White House did not immediately respond to the questions in this regard. An official announcement is expected soon.
Modi's first meeting with Trump has been scheduled to take place at the White House on June 26.
The Indian Navy had made the request for this intelligence, surveillance and reconnaissance (ISR) platform last year.
US Aerospace expert Vivek Lall of General Atomics who was pivotal in India acquiring Boeing P8 ISR technology is believed to have played a key role in fast-tracking the decision-making process of the Trump administration.
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