PennDOT spokeswoman Erin Waters-Trasatt said state officials have been monitoring the issue and recently decided to move forward as more and more states have issued similar options.
The new license would denote an "X" in the gender section rather than "male" or "female."
Waters-Trasatt conceded, however, that PennDOT still has work to do on logistics for it.
"We know we're proceeding with the 'X' indicator, it's just a matter of what a customer may or may not need to supply and what that means for us," she said. "There's a lot of IT and systems issues, obviously, to make these types of changes. So it's really just looking at a practical level of what we need to do."
PennDOT has the authority under the state motor vehicle code to make the change without the approval of the Pennsylvania Legislature.
Waters-Trasatt noted the gender adjustment will not interfere with the ongoing REAL ID driver's license program.
"We expect to be offering this option at least before this time next year, but we're working on it as quickly as we can," she added.