The department says the new system will be more specific, with different warnings for imminent and elevated threats, CNN reported. Warnings could also be targeted by industry or just to police.
"The plan is not yet final, as we will continue to meet and exercise with our partners to finalize a plan that meets everyone's needs. We remain on track to implement the new system later this month," Amy Kudwa, the spokeswoman, said.
The color-coded system has been criticized for not providing information anyone could act on. Homeland Security Secretary Janet Napolitano promised in a speech in January that it would be replaced by a system that would be "specific to the threat."
Kudwa said the department has been working with other government agencies and the private sector on a new system.