The Ministry of Defense will unveil a bill to that effect in September.
The controversial conservative had been ambassador to Germany and acting director of national intelligence.
The legislation was approved in Parliament and is expected to be signed by the president.
Chancellor Angela Merkel and her cabinet endorsed a ban on the therapy for minors; now Parliament will vote.
The German capital saw more attacks targeting gays, lesbians, and transgender individuals in the first nine months of 2019 than occurred in all of 2018.
The proposal would ban use of the discredited practice on minors and allow it for adults only under certain circumstances.