The Biden administration is set to deny US$130 million of military aid to Egypt over human rights concerns, three sources familiar with the decision told Reuters.

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Secretary of State Anthony Blinken said in September that the aid would be withheld if Egypt did not address specific human-rights related conditions.

Rights groups had called on the administration to block the entire US$300 million of Foreign Military Financing to Abdel Fattah al-Sisi's government. Sisi, who ousted the Muslim Brotherhood in 2013, has overseen a crackdown on dissent that has tightened in recent years.

One source said members of Congress had been briefed on the administration's decision to withhold the aid, which accounts for 10 per cent of the US$1.3 billion that Egypt is still expected to receive from the United States this year. As of now there are no plans to withhold the rest of that aid, the source said.

US Senator Chris Murphy, a Democrat and an ally of President Joe Biden, welcomed the decision, and said Sisi had failed to meet the administration's "narrow and wholly achievable human rights conditions".

"It sends the important message abroad that we will back up our commitment to human rights with action and gone are the days where dictators receive blank checks from America,” Murphy said in a statement.