Huawei Technologies has decided to challenge a United States Federal Communications Commission (FCC) decision barring US rural carrier customers from tapping an $8.5 billion government fund to purchase equipment from the Chinese company, Wall Street Journal reported on Thursday.

Last week, the US telecommunications regulator voted to propose requiring carriers to remove and replace equipment from Huawei from existing networks. The move could eliminate a key source of funding for Huawei's biggest US business — telecom equipment.

Huawei is expected to file a suit challenging the FCC decision next week in the Fifth Circuit Court of Appeals in New Orleans, the Journal reported, citing people familiar with the matter.

The company is expected to make an announcement about the legal case at its Shenzhen headquarters next week, the report added.

“We don't comment on speculation,” Huawei spokesman in Shenzhen told Reuters.

To contest the FCC order, Huawei has 30 days from the day the telecommunications regulator voted on November 22.