North Carolina Governor Pat McCrory has said he wants to make changes to a controversial new state law condemned by business groups, activists and celebrities as anti-gay.
The law invalidated several local anti-discrimination measures that protected gay and transgender people.
It also requires people to use public toilets that correspond to the sex listed on their birth certificates.
The state’s anti-discrimination rules should be strengthened, McCrory said.
However he said the restrictions on access to public toilets should remain.
Major companies such as Bank of America and Apple have criticised the law and others vowed to curtail their businesses in the state because of it.
Greater Raleigh Convention & Visitors Bureau said five groups have cancelled conventions with 16 others considering
Mr McCrory acknowledged receiving a large amount of “feedback” about the law over the past few weeks.
“Based upon this feedback, I am taking action to affirm and improve the state’s commitment to privacy and equality,” he said.