Mexico's Supreme Court unanimously ruled that a law banning gay marriage in southern Oaxaca state is unconstitutional setting a legal precedence that could pave the way for national legalization.

In a decision on Wednesday, the tribunal struck down the law, which declares that "one of the purposes of marriage is the perpetuation of the species."

The court said in its ruling that to condition marriages to the union of one man and one woman "violates the principle of equality," and the state's civil code will now read marriage "between two people."

The court's ruling comes after a lawsuit filed by three gay couples, two lesbian and one gay, against the state of Oaxaca.

Currently, same-sex marriage is only legally allowed in Mexico City, where a law was enacted in 2010. 

The decision in Mexico City is significant because the Supreme Court decided that marriages performed there must be recognized in every other state in Mexico.

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