Secretary of State Antony Blinken said the organization is also being designated for diplomatic penalties for “providing financial support for an act of terrorism.”
The agent declined to say whether Rushdie was still in hospital, saying the most important thing was that the writer is going to live, The Guardian reported.
If the 75-year-old celebrated British American novelist wins, he will become the first Indian-born writer to win the prestigious honour since Rabindranath Tagore won the Nobel for 'Gitanjali' in 1913.
It is quite clear though that a large chunk of midnight's grandchildren have no interest in that India or in allowing art to speak for itself; they are so amped up on their manufactured rage...
Rushdie, 75, was stabbed in the neck and torso at the Chautauqua Institution in New York on August 12.
'Stand wih Salman': Kiran Desai, Guy Talese, other writers read from Rushdie's works at New York event
'Stand With Salman: Defend the Freedom to Write' was hosted exactly a week after Rushdie was stabbed in the neck and stomach onstage by a 24-year-old New Jersey man.
Salman Rushdie, the author, was stabbed by a 24-year-old New Jersey resident identified as Hadi Matar, the US national of Lebanese origin, on stage last week in Western New York.
Matar said he was less familiar with Rushdie's written work but had watched his videos on YouTube. "I saw a lot of lectures," he said. "I don't like people who are disingenuous like that."
Rushdie, 75, is getting treatment in a Pennsylvania hospital for severe wounds.
The suspected assailant, who has pleaded not guilty to attempted murder charges, did not say whether he was inspired by the 1989 edict, or fatwa, issued under Iran's former supreme leader.
Cultural leaders in the state led by veteran author M T Vasudevan Nair have come out against the attack on acclaimed writer Salman Rushdie.
The attack on Booker Prize-winning author Salman Rushdie on stage at the Chautauqua Institution in New York on August 12 has sent shockwaves across the literary fraternity.
'Rushdie himself is responsible for the attack,' dpa news agency quoted Foreign Ministry spokesman Nasser Kanaani as saying.
Rushdie was put on a ventilator after he was stabbed by Matar. Earlier on Saturday, Matar pleaded not guilty to charges of attempted murder and assault at a brief court appearance.
Rushdie in 'critical condition,' but his 'usual feisty & defiant sense of humour remains intact,' says son
Infused with magical realism, 1988′s “The Satanic Verses” drew ire from some Muslims who regarded elements of the novel as blasphemy.
The handle which issued the threat has also praised Hadi Matar, the assailant who attacked Rushdie in New York.
Bookstores reported a flurry of interest in the Indian-born author, some from readers too young to remember the original fury he prompted across much of the Muslim world.
Salman Rushdie, during a New York talk, said that terrorism was really the art of fear, "The only way you can defeat it is by deciding not to be afraid."
However, US media reports claimed that he is sympathetic to Shia extremism and Islamic Revolutionary Guard Corps causes.
'We must tell better stories than the tyrants': Revisiting Salman Rushdie's speech months before fatal attack on him
Today the 75-year-old India-born British-American novelist Rusdhie is battling for his life after he was attacked in New York yesterday.