The Office of Professional Responsibility's recommendation follows an internal report from the Department of Justice's inspector general, which found that McCabe was not fully forthcoming in answers he gave about the FBI's investigation into the Clinton Foundation, according to NBC.
The decision to dismiss McCabe now rests with Sessions. McCabe, who resigned as deputy director in January, remains on the federal payroll and is set to retire Sunday. If he were fired before then, his pension would be at risk.
Sessions is expected to act on the finding soon, and he will likely accept the recommendation, NBC News reported, citing officials familiar with the situation.
President Donald Trump and some congressional Republicans accused McCabe of political bias in his role at the FBI during investigations into Hillary Clinton's emails and Russian efforts to influence the 2016 presidential election.
Trump weighed in on McCabe's pending retirement in a December tweet.
McCabe briefly served as acting director of the FBI after Trump fired James Comey. Trump appointee Christopher Wray took over as FBI director in August.