Flags of the Confederate States of America
A commission on Wednesday voted to recommend the magnolia over a design that featured a shield with wavy lines representing water.
The Pentagon banned the racist flag at military institutions, with a carefully worded policy doesn’t mention the word ban or that specific flag.
The president also told CBS News that people who "like the Confederate flag" are thinking about NASCAR, not slavery.
The state's Republican governor has said he would approve a measure to remove the racist symbol.
The five-time Grammy winner and Magnolia State native called the flag "a direct symbol of terror" for the Black community.
"The noose was real, as was our concern for Bubba (Wallace),” NASCAR President Steve Phelps said.
“I will teach my grandkids to hate you all," the woman said at a Black Lives Matter protest.
Wallace is the only Black driver in the sport's top level and called for the Confederate flag to be banned from races earlier this month.
Some Black lawmakers are urging colleges and local governments to defy state law and act on their own.
The American auto racing company said the flag "runs contrary to our commitment to providing a welcoming and inclusive environment for all fans."