Germany is poised to introduce a law that will allow parents to choose whether their sons are circumcised.

The move is an attempt to appease the Jewish and Muslim communities angered by a court ruling in June that in effect outlawed the practice.

The cabinet is expected to adopt the bill next week to clarify the law after the court in Cologne ruled that carrying out the religious tradition on boys was tantamount to bodily harm.

"It is a clear political signal that Jews and Muslims continue to be welcome in Germany," said Dieter Graumann, president of the Central Council of Jews in Germany in a statement. "We are glad that Jewish laws, and with it Jewish life, will not be deemed illegal – legal certainty in this case means safeguarding the future of Judaism in Germany."

The draft of the bill allows circumcision to be carried out on boys up to six months old by a doctor or someone as "skilled as a doctor".

Although the religious practice is also carried out by many Muslims, the row has largely centred on the Jewish community, which has been angered by the debate.

"Why should people say how I should live my religion?" said Walter Rothschild, chief rabbi of the northern German state of Schleswig-Holstein, adding that he did not blame the government. "Politicians didn't want this fight," he added. "It was the last thing they wanted."

Members of the Jewish community said the debate had made many feel unwelcome in Germany, which has been exacerbated by recent attacks on prominent Jews in past weeks.

Although the federal ministry of justice was not able to confirm when the bill would be adopted, a spokesman said it was likely to be on Wednesday, with the first reading due to take place in parliament in November.