It is thought the US military presence in Iraq and Afghanistan will be not be affected.
However, the proposal is thought to involve withdrawing at least 70,000 troops from Europe and Asia.
The Pentagon has been working for some time on what promises to be the biggest shake-up of US forces around the world at least since the end of the Cold War.
The proposals will clearly have a significant impact in countries like Germany and there are concerns in some circles in Washington about what they will mean for American influence in Nato.
