Saudi Arabia's King Salman has issued a decree allowing women to drive for the first time, state media say.
Government ministries are to prepare reports within 30 days and the order will be implemented by June 2018, the Saudi Press Agency reported.
Saudi Arabia is the only country in the world to forbid women from driving.
Under the current system, only men are allowed driving licences and women who drive in public risk being arrested and fined.
Because of the law, many families have had to employ private drivers to help transport female relatives.
Rights groups in the kingdom have campaigned for years to allow women to drive, and some women have been imprisoned for defying the rule.
"The royal decree will implement the provisions of traffic regulations, including the issuance of driving licences for men and women alike," the Saudi Press Agency (SPA) said.
The country's US ambassador, Prince Khaled bin Salman, said it was "an historic and big day" and "the right decision at the right time".
He confirmed that women will not have to get permission from their male guardians to take driving lessons, and would be able to drive anywhere they liked.
"A huge step"
Ambassador bin Salman described the step as "part of Vision 2030, which is a huge step toward a brighter future."
That plan for the country's economic reinvention rests on a number of pillars, including youth empowerment, social organization and women's empowerment, "which is an extremely important element of the changes happening in Saudi Arabia," the ambassador said.
"We are trying to increase women's participation in the workforce," bin Salman said.
"In order to change women's participation in the workforce we need them to be able to drive to work," said bin Salman, who is a son of the current king and a brother of the crown prince. "We need them to move forward, we need them to improve our economy."
The crown prince, who was appointed by his father to the position in June, is seen as a major power in the country and is expected by many to be named king before too long.
Asked by CNN why the announcement was made now, ambassador bin Salman said, "there is no wrong time to do the right thing." He added that "it's not religious nor a cultural issue" and said women "used to use transportation means during my grandfather's era."
He said that women will not have to get permission from their male guardians to take driving lessons.
"Legally there's nothing that can prevent it," the ambassador said, but he acknowledged that "there might be social issues."
He said that the choice will be up to women. "It's not 'women must drive,' it's 'women can drive.' "
The Kingdom of Saudi Arabia follows a strict form of Wahhabi Islam that bans the mixing of sexes at public events and places numerous curbs on women. These restrictions are enforced by religious police whose powers the crown prince has successfully lobbied to curtail since coming to power.
His success on that front is evident in the way Saudi Arabia, which is celebrating the 87th anniversary of its creation this month, has recently been easing some restrictions on women.
Women were allowed to enter a sports stadium for the first time on September 23, for a special pageant.
In May, King Salman decreed that government agencies should list services women can seek without permission from their husbands, fathers or other male guardian. He also ordered organizations to provide transportation for female employees -- a step that eased one hurdle to women's employment given that public transportation is virtually non-existent.
Before May, women weren't able to access government services without getting permission from a male guardian or having him present.
There have also been some easing of restrictions on women's ability to work in the fields of law and education. In 2015, women were elected to municipal councils for the first time.
Members of the Saudi royal family have been signaling an easing on women's ability to drive for months now. In May, Prince Faisal Bin Abdullah, a former education minister, told a privately owned TV channel that he had "no doubt" women would one day be able to drive in his country.
When Saudi women first defied the driving ban
"Let me tell you about our leadership's view on women," he said. "Never mind driving a car, which is coming, no doubt ... I want her to drive society."
Another prominent prince, Alwaleed bin Talal, wrote a December blog post that pushed for authorities to allow women to drive, saying that the ban curtailed their rights and hurt the economy because it made it harder for women to work.
In 2013, a campaign to defy the government ban on women driving saw dozens get behind the wheel and post photos of themselves driving on social media. They were quickly cut short by authorities and several spoke to CNN about their fear of retaliation in the aftermath.
Ambassador bin Salman said the decree is part of a historical arc. "We have a young and dynamic society that is young and more open." He added that the decision is "part of a process that's happening since 1932" when the country was founded.
(BBC&CNN)