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The first minister has said he will "very imminently" confirm if he will launch a legal battle with the UK government over a bill which will make it easier to change gender.
MSPs backed the Gender Recognition Reform (Scotland) Bill but it was blocked by Scottish Secretary Alister Jack.
He claims it will have an adverse impact on British equality laws.
Humza Yousaf said he was considering legal advice.
The UK government is blocking the legislation under what is known as a Section 35 order.
It prevents legislation passed by Holyrood from being given royal assent if the Scottish secretary believes it would have a detrimental impact on areas reserved to Westminster.
The deadline for lodging a legal challenge to Mr Jack's decision falls in the middle of April, shortly after the Scottish Parliament returns from its Easter recess.
Asked whether he would confirm the launch of an appeal, Mr Yousaf said he would "confirm very imminently".
It comes less than a month after he took over as SNP leader following a campaign during which he repeatedly questioned on the subject.
On Tuesday he told reporters: "I made it clear during the election contest that my first principle was to challenge what I consider to be an undemocratic veto over legislation that was passed by a majority of the Scottish Parliament.
"And there's a range of views over the GRR Bill, but actually almost regardless of what the Bill is, the fact that a Section 35 order has been used is something that I think is unacceptable in this circumstance.
"So I'll make that decision known very, very soon. I'm considering, as you'd imagine with any court case or any potential court case, the legal advice.
"I can't go into the detail of that legal advice, as you'd imagine. And as I say, I'll make a decision on very imminently."
Former First Minister Nicola Sturgeon called the decision to block the bill a "full-attack" on the Scottish Parliament, and vowed to oppose it before her resignation earlier this year.
The bill, which passed by 86 votes to 39 in the Scottish Parliament, would streamline the process in Scotland for changing legal gender.
The Scottish government argued that it was necessary because the current process was too difficult and invasive, and caused distress to an already marginalised and vulnerable minority group.
No diagnosis or medical reports would be required, and the period in which adult applicants need to have lived in their acquired gender would be cut to three months.
Sixteen and 17-year-olds applying for a gender recognition certificate would have to live in their acquired gender for at least six months.
However it led to concerns from some women's groups about safeguards to protect single sex spaces including women's prisons and refuges.
Ash Regan, who went on to challenge Mr Yousaf in the SNP leadership race, resigned from the government over the issue.
Another leadership candidate, Kate Forbes, was on maternity leave when the vote took place but she said she would not have backed the bill.
They both said they would not challenge the Section 35 order in court.
The Scottish secretary has said that having two systems of gender recognition north and south of the border risks creating "significant complications".
In the UK government's statement of reasons, concerns are also raised about the safety of women and girls given the "significantly increased potential for fraudulent applications to be successful".
It also highlights an impact on the Equality Act 2010, which makes "sex" a protected characteristic.
A former Supreme Court judge has said the Scottish government's chance of winning a legal challenge are "very low" and called for both sides to find a compromise.