The group was likely to recommend a combination of a small short-term increase of US troops and long-term training for Iraqi forces, the newspaper reported, citing senior defence officials.
The options have been dubbed "Go Home," "Go Big" and "Go Longer" by insiders.
Sources who have been briefed on the review, led by Gen. Peter Pace, the chairman of the Joint Chiefs of Staff, said the group had concluded there were not enough US forces to "Go Big," sending in thousands more troops, the Post said.
"Go Home," the quick pullout option, was rejected as likely to push Iraq directly into a full-blown civil war, the Post said.
The Pentagon group devised a hybrid plan, "Go Long," which calls for cutting the US combat presence combined with a long-term expansion of the training and advising of Iraqi forces, the newspaper said.
The officials said that under the mixture of options, the US presence in Iraq would be boosted by 20,000 to 30,000 for a short period, the newspaper said. Currently there are around 140,000 US troops in Iraq.
Democrats, who won control of the US Congress this month, have vowed to push for a withdrawal from Iraq in the next few months.
President George W. Bush has insisted US troops would not leave until Iraqis can take over security and has repeatedly rejected setting a timetable for withdrawal. However, the White House has said that Bush is open to new ideas.
In addition to the Pentagon, other US national security agencies will review Iraq strategy. The bipartisan Iraq Study Group is considering alterative approaches as well.

Copyright Reuters, 2006