The New Scientist reports that the Cannon-Delivered Area Effects Munition system - whose contract is currently being bid for by a string of companies - will choose its own targets such as enemy tanks and armoured shells.
The weapons will reach a distance of 60 kilometres and can search 28 square kilometres for their targets. They will also have a method of slowing down, which is likely to be a parachute as it scans below.
A spokesperson for the US Army said: "This is not an autonomous weapon, nor is it intended to be. We seek an advanced capability for a round - once fired - to continue pursuing a target despite the types of interference that might cause it to pursue something else. This would improve our capabilities to avoid collateral damage."
It comes after it was revealed soldiers are to receive futuristic goggles that can help them "see" around corners.
The Army are rolling out a special device that will replace night vision goggles but will also allow soldiers to see through vegetation and smoke as well as tell the difference between a friend or an enemy.
Heat sources can also be identified using the goggles and the seeing around the corner feature works using a wireless connection. The information is displayed on a heads up display using augmented reality.
Army Colonel Christopher Schneider, the project manager for the system, told USA Today: "It is no longer just a night vision device. The enemy can't see we're targeting him until we pull the trigger."
Major General Maria Gervais, deputy commanding general of the Army's combined arms center at Fort Leavenworth, Kansas, added: "We won't be able to avoid the dense urban terrain or the megacities in the future."