"Uganda will pass a new law against homosexuality by the end of 2012 as a "Christmas gift" to its advocates, the speaker of parliament has said.
The AP news agency quoted Rebecca Kadaga as saying that Ugandans were "demanding" the law.
Homosexual acts are already illegal in Uganda, but the bill which is before parliament proposes tougher sentences for people convicted.
Foreign donors have threatened to cut aid if gay rights are not respected.
The bill, tabled by MP David Bahati, proposes jail terms for homosexual acts, including a life sentence in certain circumstances.
It prohibits the "promotion" of gay rights and calls for the punishment of anyone who "funds or sponsors homosexuality" or "abets homosexuality"