Brasilia - The Brazilian government will begin paying for sex-change operations, local media reported Friday, citing President Luiz Inacio Lula da Silva and Health Minister Jose Gomes Temporao.

The minister made the announcement late Thursday alongside Lula, as they opened the first National Conference of Gays, Lesbians, Bisexuals, Transvestites and Transexuals being held through Sunday in Brasilia.

Gomes Temporao said the move is in accordance with the government's homosexual rights policy.

"It is one more step towards the consolidation of that policy, in which Brazil is a world leader," he noted.

Lula said the state's refusal to pay for such operations would amount to "discrimination."

"When you pay your taxes, nobody asks you which is your sexual option. Why discriminate against you when you freely choose what to do with your body?" Lula said.

Brazil's Federal Medicine Council has approved sex-change operations since the late 1990s, but until now they could only be conducted in the private healthcare system at a very high cost.

Gomes Temporao said the surgery will initially be performed only in state university hospitals in large urban areas. (dpa)