The council is expected to vote on the new sanctions on Friday, diplomats said.
The measure would ban the supply of nearly 90 percent of refined oil products to North Korea and order the repatriation of all North Korean nationals working abroad within 12 months, according to the text obtained by AFP.
The United States has been in negotiations with China, Pyongyang's ally, on slapping new sanctions in response to the November 28 test of an intercontinental ballistic missile (ICBM).
Since last year, North Korea has carried out a nuclear test -- its sixth -- and a series of advanced missile launches which are banned under UN resolutions.
US envoy says 'real dialogue' needed with North Korea
The latest draft would build on previous sanctions that restrict crude and refined oil deliveries to North Korea, most of which are supplied by China.
US President Donald Trump asked Chinese President Xi Jinping last month to cut off oil to North Korea, a move that would deal a crippling blow to its desperately struggling economy.
Tens of thousands of North Koreans have been sent to Russia and China to earn hard currency for Pyongyang, working in what UN rights officials have described as "slave-like conditions."
The draft resolution would cap crude oil supplies to four million barrels per year and require countries to seek UN permission to ship crude to North Korea.
Deliveries of refined petroleum products including diesel and kerosene would be capped at 500,000 barrels for next year, according to the measure that would order all countries to report their shipments to the United Nations.
The measure would expand a list of banned exports to include food products, machinery, electrical equipment, earth and stone including magnesite and magnesia, wood and vessels from North Korea.
All countries would be authorized to seize, inspect, freeze and impound ships suspected of carrying illegal cargo to and from North Korea, according to the proposed measure.
A total of 19 North Korean officials, most of whom work in banking, would be added to the UN sanctions blacklist along with the North Korean ministry of the people's armed forces, which manages logistics for the army.
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