Under the Immigration and Nationality Act, a person born in the U.S.to a foreign diplomatic officer is not subject to US law and is not automatically considered a USA citizen at birth.
Muthana says she applied for and received a United States passport before leaving for Turkey.
Mr Trump has contemplated reopening the United States military base at Guantanamo Bay to take in new foreign inmates, while Britain on Wednesday revoked the citizenship of a female jihadist who wanted to return home with her newborn baby.
"How can we fairly evaluate someone when we do not know what they did or why?"
Under British law, the Home Secretary can revoke citizenship if it is "conducive to the public good" and if it does not make a person stateless.
Suhan Rahman and Hoda Muthana.
Hoda Muthana left the U.S.in 2014 when she was a 20-year-old student, according to reports. "Now I'm changed. Now I'm a mother and I have none of the ideology, and hopefully, everyone will see it when I come back".
"I would tell them please forgive me for being so ignorant, and I was really young and ignorant and I was 19 when I chose to leave", she said.
Muthana is now being held in a refugee camp in northeast Syria.
She admitted to the Guardian that she "became jihadi, if you like to describe it that way".
Speaking from al-Hawl refugee camp in northern Syria, Muthana, who was once one of Isis's most prominent online agitators, said she had been brainwashed and had misunderstood her faith when she aligned herself with Isis.
Trump denies calling Andrew McCabe's wife a 'loser' as feud intensifies
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"I believe that America gives second chances".
Pompeo said she has no "legal basis" to claim American citizenship.
Muthana, who dodged sniper fire and roadside bombs to escape, is ready to pay the penalty for her actions but wants freedom and safety for the son she had with one of two Isis fighters she Wednesday, he said.
After her second husband was also killed she married a third IS fighter but she "became disenchanted with the marriage", and chose to escape, the lawyer said. The third marriage to a Syrian fighter was reportedly "brief".
Her Twitter feed was "full of bloodcurdling incitement", according to The Guardian.
President Trump quickly followed up with a tweet, taking credit for the rebuke.
In one missive posted on Twitter in 2015, she wrote: "Go on drive-bys and spill all of their blood, or rent a big truck and drive all over them". Veterans, Patriots, Memorial, etc Day ... The Caliphate was a black box", Max Abrahms, author of "Rules for Rebels: "The Science of Victory in Militant History" and a political science professor at Northeastern University, told Sputnik News.
Secretary of State Mike Pompeo says an Alabama woman who left home to join the Islamic State group in Syria is not a USA citizen and will not be allowed to return to the United States. "They can not just waltz back, nor should they be allowed to", Maitra concluded.
Pompeo says Hoda Muthana does not have a USA passport or any legal basis to enter the country.
Mr Trump said on Twitter he has "instructed" Secretary of State Mike Pompeo "not to allow Hoda Muthana back into the country" - a break with usual U.S. protocol not to comment on individuals' immigration issues.
On Feb. 20, ISIS looked close to defeat in its last enclave in eastern Syria on Wednesday as civilians poured out, and the USA -backed Syrian Democratic Forces (SDF) said the remaining jihadists wanted to fight to the death, Reuters noted.