The law comes after a Saudi court in January sentenced three men to jail and up to 1200 lashes each for orchestrating and filming the rape of a teenage girl using telephones equipped with cameras and distributing the footage via the telephones.
The conservative Muslim kingdom's consultative 150-member Shura council was expected to endorse the new law soon, local newspapers said on Saturday.
The state telecommunications regulator this year warned against using third generation (3G) mobile phones for immoral purposes.
The 3G mobile phones can access the internet, which is strictly controlled in Saudi Arabia, and receive high-quality video clips from adult sites.
A ban was recently overturned on the import and sale of mobile camera phones. Religious leaders said they were used to invade privacy, particularly of women.
The use of camera phones has triggered scuffles at weddings and girls' schools after handsets were used to film and distribute pictures of unveiled women, newspapers have reported.