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.
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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.
What was the reaction?
The move was welcomed by the US state department, which called it "a great step in the right direction".
UN Secretary General Antonio Guterres echoed that sentiment.
Saudi activist Loujain al-Hathloul, who was detained for 73 days in 2017 for flouting the ban, tweeted "thank God" following the announcement.
Manal al-Sharif, an organiser of the Women2Drive campaign who has also been imprisoned for driving, said on Twitter that Saudi Arabia would "never be the same again".
Activist Sahar Nassif in Jeddah told the BBC she was "very, very excited - jumping up and down and laughing".
"I'm going to buy my dream car, a convertible Mustang, and it's going to be black and yellow," she said.
The hashtags "I am my own guardian" and "Saudi Women Can Drive" quickly gained traction on social media.
Not everyone reacted positively, however, with conservative voices accusing the government of "bending the verses of Sharia".
"As far as I remember, Sharia scholars have said it was haram (forbidden) for women to drive. How come it has suddenly become halal (permissible)?" one critic tweeted.
Others emphasised that despite the latest development, Saudi Arabia remains a long way off gender equality.
source : BBC