The senior official, whose name was withheld, said high-level discussions are under way to determine if the unidentified person, involved with al-Qaida, should be targeted for death, CNN reported Monday.
The target or the country in question were not revealed.
Before such military force against an American is approved, there must be imminent danger and no reasonable prospect of capturing the suspect. The president must also approve the decision, CNN noted.
The United States has targeted its citizens in the past, notably Yemeni-American cleric Anwar al-Awlaki, a key al-Qaida member killed by a U.S. drone in 2011.