The National Institute for Health and Clinical Excellence (NICE) proposed that women should get a choice of home, hospital or midwife-led units for labour.
The draft plans also said they should get good advice about the risks and benefits of each option.
They say hospital births may be a safer option, but midwives insist that hospital births are only needed if there are complications.
Women often say that they feel 'in charge at home' and that can only be a good thing!
And Health Minister Ivan Lewis believes that the evidence that hospital was safer than home was "flimsy".
He believes that 'we have to trust and respect women, give them the information then allow them to make the best choice for themselves.'
The government has promised more choice by 2009, but campaigners say many women are left with little choice in reality because of staff shortages and lack of money.
The proposals by NICE, which must now be consulted on, could take several years to be implemented by the NHS.
Among the chief recommendations are choice of how and where women give birth.
Where available pain relief should be offered and women should not be left alone during labour.
NHS chiefs are to be urged to make the experience more pleasant by encouraging women to immerse themselves in water during the early stages of labour and to be able to play music of their choice.
NICE also wants to see a national survey to allow proper comparisons on safety and cost effectiveness of different settings.
NICE deputy chief executive Andrea Sutcliffe commented: "The evidence we have tells us that giving birth has never been safer than it is today.
The problem in all too many areas is that women have little option but to give birth in hospital.'
The National Childbirth Trust said
"Overall, less than one baby per 1,000 will die during or shortly after birth. Our primary concern is to make birth as normal as possible."
The recommendation comes after the government made a manifesto commitment to give women choice of where they give birth and what pain relief they use by 2009.
But the Royal College of Midwives has said care was being undermined by a shortage of midwives. Another 10,000 midwives are needed on top of the 40,000 currently working in the NHS.
Louise Silverton, from the RCM disagrees that it is safer to give birth in a hospital.
She believes that home birth is a better option for the 60%-70% of women who experience no complications during labour. Women don't generally find medicalised environments like hospitals 'a conducive environment for labour'.
'Remember that the woman is in fact running a marathon when she's in labour.
She needs to be fed, needs to be able to move, and needs to be in control of the situation.'
The National Childbirth Trust said financial pressures in the health service had meant many NHS trusts had closed midwife-led birth centres.
Shockingly only 3% of women give birth at home despite over one in 10 saying they would like to.
Mary Newburn of the NCT said: "The problem in all too many areas is that women have little option but to give birth in hospital. We welcome the recommendations, but it needs to be matched by action on the ground."
A Department of Health spokeswoman said the government has "turned a corner" over midwife staff numbers and was well on its way to meeting the 2009 target.

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Do you think women should have more choice?
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June 2006 |