The 'Freedom of Oxford' had been granted to the de facto leader of Myanmar in 1997 for her "long struggle for democracy" by the Oxford City Council.
A cross-party motion was unanimously passed by the council yesterday which said it was "no longer appropriate" for her to hold the honour.
Oxford City Council leader Bob Price supported the motion to remove her honour and confirmed it was an "unprecedented step" for the local authority.
The city council will hold a special meeting to confirm that the honour is removed on November 27.
Suu Kyi, winner of the Nobel Peace Prize, has close links to the city of Oxford, having lived in Park Town with her family and earlierattended St Hugh's College from 1964 until 1967.
The city council's move comes days after her alma mater, St Hugh's, removed her portrait from the main college entrance.
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