President Donald Trump's administration said in court documents today it wants an end to the legal fight over its ban on travellers from seven predominantly Muslim nations and will issue a replacement ban as it strives to protect the nation.
Details of the new proposal were not provided in the filing or at a wide-ranging news conference by Mr Trump.
But lawyers for the administration said in the filing that a ban that focuses solely on foreigners who have never entered the US - instead of green card holders already in the US or who have travelled abroad and want to return - would pose no legal difficulties.
"In so doing, the president will clear the way for immediately protecting the country rather than pursuing further, potentially time-consuming litigation," the filing said.
Mr Trump said at the news conference that a new order would come next week.
"I will not back down from defending our country. I got elected on defence of our country," he said.
The administration asked the 9th US Circuit Court of Appeals to hold off on making any more decisions related to the lawsuit filed by the states of Washington and Minnesota until the new order is issued and then toss out the decision keeping the ban on hold.
Washington state Attorney General Bob Ferguson said the federal government was "conceding defeat" by saying it does not want a larger appellate panel to review the decision made last week by a three-judge panel of the 9th Circuit.
The judges rejected the Trump administration's claim of presidential authority and questioned its motives in ordering the ban.
The administration attacked the decision in today's court filing, saying the panel wrongly suggested some foreigners were entitled to constitutional protections and that courts could consider Mr Trump's campaign statements about a ban.
The lawsuit says the ban unconstitutionally blocked entry to the US on the basis of religion and harmed residents, universities and sales tax revenue in the two states. Eighteen other states, including California and New York, supported the challenge.