The country's official Xinhua News Agency reports the decision by President Xi Jinping ruling Communist Party has been taken because of fears over China's aging population.
Lifting the three-decade-old one-child policy is understood to have been approved by the party’s decision-making Central Committee.
It will allow all couples to have two children
Last year, the country's top legal body, the Standing Committee of the National People's Congress, passed a resolution allowing couples to have two children if either parent is an only child.
China introduced its one-child policy at the end of the 1970s to keep a lid on rapid population growth.
However, the country's leaders now fear China's ageing population will reduce the labour pool and exacerbate elderly care issues.
By 2050, more than a quarter of the population will be over 65.

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