Luxembourg is set to pass gay marriage this summer.
If approved by parliament, gay couples could be finally walking down the aisle by the end of the year.
Justice Minister Félix Braz announced the news this week, saying he hoped it would be finally made law after years of delays.
Drawn up by the former government in 2010, the same-sex marriage draft law was due to be voted on late last year.
But following a change of government in October, the vote was postponed.
Same-sex couples have only been able to mark their union under a PACS – based on French civil unions – meaning they have less rights and are unable to jointly adopt children.
Luxembourg’s LGBT group Rosa Lëtzebuerg Asbl welcomed the news, saying marriage will finally be for ‘all of us’.
The group’s president Gabriele Schneider said they were ‘very happy’, saying they expected marriage equality to take years to pass.
‘We are indeed very happy to see that it is one of the important points on the agenda of the government continuing working on the law and vote all the necessary steps to have filed it during the year 2014,’ she said.
‘That's a very much appreciated act of the new government and a big sign given by Luxembourg through the whole globe living solidarity in a modern society.’
While a small European nation, it is the first to have an openly gay Prime Minister and Deputy Prime Minister serving at the same time.
If approved, Luxembourg will be the 11th European country to recognize same-sex marriage.
It will follow Belgium, Denmark, France, Iceland, the Netherlands, Norway, Portugal, Spain, Sweden and the UK.
A survey conducted last year revealed 83% of people in Luxembourg support same-sex marriage.