This will mean that the current rule where people have to live for two years as their desired gender before they can officially change sex will go.
The current rule where people must be diagnosed with gender dysphoria, a condition where a person's biological sex and identity does not match, will be scrapped.
In future, all that will be required is that people will make a statutory declaration of their intention to live in the acquired gender to death.
In the same consultation on the Gender Recognition Bill, people whose gender is "non-binary" will be able to define themselves as "X" on their birth certificates.
Self-identifying is supported by both Theresa May and Jeremy Corbyn.
However, it is likely that some Christian groups will be unhappy with the decision.
Simon Calvert, deputy director of the Christian Institute told the Sunday Times:"It is worrying when the leaders of the main political parties are so out of touch with the concerns of ordinary people.
"Allowing men to self-identify as female without any medical diagnosis allows them to invade the privacy of women and girls
"It's time for a reality check. Some things can't be changed. May and Corbyn want to elevate the principle of 'gender self-declaration'. But it is wrong, it is anti-scientific and it is dangerous".
The consultation will be published this autumn after consulting Britain's estimated 1.5 million LGBT people to help inform the policy.