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Burma may join the annual US-Thailand joint military exercise, Cobra Gold.
It is the first time Burma is invited to join the large-scale drill which brings together US and Thai troops and observers from across Asia.
The American invitation to the country is another positive sign for the slowly improving relations between the two counties.
The move comes after Burma has seen a series of political and social reforms since the military-backed civilian government came to power two years ago. It has since freed hundreds of prisoners and introduced more press freedom. In return, Washington has been easing sanctions against the country, including a recent decision to end economic sanctions. However, the renewal of military ties, which were completely cut in the 1990s, is a difficult issue for the US.