Allan Bell made the statement during peaceful demonstrations by pro-choice and anti-abortion campaigners outside the Manx parliament on Tuesday.
Mr Bell said work on changing the legislation would begin "at the end of this year, early next year".
The Termination of Pregnancy Act 1995 is the current law governing abortions in the Isle of Man.
This means a termination can only be carried out on the island in the case of a pregnancy arising from a criminal offence such as rape, or on mental health grounds.
For most women seeking an abortion, the only option is to travel to the UK to pay for the procedure.
Manx campaign group, CALM (Campaign for Abortion Law Modernisation), which was established in April, wants island legislation to be brought in line with the UK.
Although it is not currently illegal, the group said it is "almost impossible" for women to have a termination on the Isle of Man.
A spokesman added: "The current act is incredibly restrictive. We are not saying abortion should be available to everyone at the drop of a hat."
Anti-abortion campaigners at the rally held banners saying: "Thou shalt not kill".
A spokesman said: "I'm part of a group which is here to represent the rights of unborn babies."
Chief Minister Allan Bell said the legislation was due to be reviewed after the Isle of Man's general election in September.

Wednesday's win for the Asian champions from South Korea means they claim fifth place in Japan ahead of Sundowns.
Kim Bo-kyung, Lee Jong-ho and an own-goal from Ricardo Nascimento gave Jeonbuk a 3-0 lead before half-time.
Percy Tau scored for Sundowns early in the second half before Kim Shin-wook's header sealed the win.
Sundowns lost to Japanese champions Kashima Antlers 2-0 in their other game on their debut at the tournament on Sunday.

Bath's injured Faletau will not resume training until the middle of November.
Wales coach Rob Howley has included him in his squad for the four-match series.
"Wales need to find a different option and maybe give them a run of games through these matches that will provide Toby with competition," Delve said.
Faletau suffered a knee injury in September on his Aviva Premiership debut for Bath, who do not expect the British and Irish Lion to start training until the middle of November.
"Although it's a huge loss to Wales you have to weigh up the value of rushing him back for those possible last two games or get him completely fit and firing for the Six Nations and the Lions tour," added Delve, who also played for Bath.
Wales play Australia in Cardiff on 5 November, followed by Tests against Argentina and Japan, concluding against South Africa at the Principality Stadium on 26 November.
Faletau and his likely replacement Ross Moriarty of Gloucester would not be available for the opening game against Australia.
The game falls outside World Rugby's international window and Premiership Rugby will not sanction the release of English-based Welsh players.
Northampton Saints wing George North, Harlequins centre Jamie Roberts and Bath pair Luke Charteris and Rhys Priestland will also be unavailable for the Wallabies game.
Ospreys fly-half Sam Davies has been included in Howley's squad after his recent performances for the region.
"I think Sam has really put himself in the mix. His early season form has been fantastic," said Delve, a former Ospreys team-mate.
"It's a nice headache to have and it will be interesting to see if Sam Davies does get a run through the course of the four games.
"Whether he gets the opportunity to get that backline moving in the way that Rob has said he wants to evolve."

Earlier this month, the force said 24 people had been charged with possession with intent to supply Class A drugs.
On Friday, it said five more people had now been charged, bringing the total to 29 and they are all from the city.
Police raided 35 addresses on 26 April during an operation involving 200 officers.
The chief minister of the Isle of Man has said abortion laws on the island "need changing".
[NEXT_CONCEPT]
African Champions League winners Mamelodi Sundowns of South Africa lost again at the Club World Cup going down 4-1 to Jeonbuk Motors in Osaka.
[NEXT_CONCEPT]
Taulupe Faletau's absence at the start of the autumn internationals presents an opportunity for another forward to stake a claim for Wales, says former number eight Gareth Delve.
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Twenty-nine people have been charged following drugs raids in Newport, Gwent Police has said.