The elections watchdog said the existing wording proposed by the David Cameron-led government - "should the United Kingdom remain a member of the European Union?" - could be perceived as biased and has proposed adding the words "or leave the European Union?"
The government has said it will accept the changes although the final decision will be made by Parliament.
The vote on the UK's membership of the European Union is due to take place before the end of 2017 as per Cameron's election pledge earlier this year.
The watchdog said it was recommending the rethink after consulting members of the public, campaigners and academics.
"Any referendum question must be as clear as possible so that voters understand the important choice they are being asked to make," said Electoral Commission chair Jenny Watson.
"We have tested the proposed question with voters and received views from potential campaigners, academics and plain language experts. Whilst voters understood the question in the Bill some campaigners and members of the public feel the wording is not balanced and there was a perception of bias.
British MPs will consider the issue in the House of Commons when they return from their summer recess next week as part of legislation paving the way for the vote.
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