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The foreign ministers of Burkina Faso, Mali, and Niger have recommended creating a confederation as a step towards a long-term goal of uniting the three West African countries within a federation.
The three countries have all been ruled by military juntas in recent years, and they have formed close ties against international pressure for a swift return to civilian rule.
They have also faced long-running jihadist insurgencies.
In a joint statement following a two-day meeting in Mali's capital Bamako, the foreign ministers spoke of the "great potential for peace, stability, diplomatic strength, and economic development that a strengthened political alliance offers."
"The ministers... guided by the ambition to ultimately achieve a federation uniting Burkina, Mali, and Niger recommend the creation of a confederation to the heads of state of the Alliance of Sahel States," the statement said.
Malian Foreign Minister Abdoulaye Diop said the conclusions will be submitted to the heads of state, who are due to meet in Bamako at an unspecified date.
The countries' economy and finance ministers last month recommended creating a stabilization fund, an investment bank, and a committee that would study an economic and monetary union, the statement added.
The proposal to create a confederation is a significant step towards closer integration between the three countries.
It remains to be seen whether the heads of state will approve the proposal, but it is a sign of the growing cooperation between the military juntas in the region.
