If adopted by the federal government, the ruling would mean the toxic products, which are readily available at supermarkets and hardware stores, would be restricted for use by licensed professionals.
It follows a long campaign by scientists and conservationists after hundreds of studies showed the poisons were having devastating impacts on non-target wildlife, including almost all Australian birds of prey.
BirdLife Australia CEO Kate Millar said the ruling was long overdue.
"This is the first major step toward the outcome we have been calling for," she said.
"The APVMA's recommendation is in line with overwhelming scientific evidence that SGARs are killing birds and wildlife."
Ms Millar said the organisation called on the Federal Agriculture Minister Julie Collins to implement the recommendation.
"Shoppers must be able to walk into stores knowing they won't accidentally purchase such dangerous products that are killing native animals, including Australia's favourite bird, the tawny frogmouth," she said.
Anticoagulant rodenticides were banned in the USA by the Environmental Protection Agency in 2013.Â
They are also banned in parts of Canada and are highly restricted in the European Union.
They work by blocking vitamin K receptors, which cause blood to clot.
However, they can take nearly three weeks to work, leaving rodents disoriented and easy prey for owls, hawks and other birds of prey.
Scientific studies have shown that repeated ingestion of poisoned prey causes the toxins to build up to lethal levels in non-target predator species.
Anticoagulant rodenticides have also been detected at pervasive levels in other threatened animals, including quolls and Tasmanian devils, and even domestic dogs and cats.
Jessica Crause, a rehabilitator for Sydney Metropolitan Wildlife, said she had seen firsthand the impact of the poisons.
"Birds grounded, unable to fly, getting attacked by predators, puffed up and clearly feeling very unwell," she said.
"It is heartbreaking, because by the time they come to ground they have been suffering for days and it is almost impossible to reverse the damage."
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