An official says BP CEO Tony Hayward will step down in October and take a job with TNK-BP, the company's joint venture in Russia.
Following the company's massive oil spill disaster in the Gulf of Mexico, Hayward increasingly became the face of BP's flailing efforts to contain the spill and clean up millions in damages.
A person familiar with the matter spoke to The Associated Press on Monday on condition of anonymity because an announcement has not yet been made.
However, BP said late Monday it had no plans to issue a statement about a board meeting Monday which sources close to the company said included discussions on Hayward's future with the company.
BP's board was due to confirm a plan to replace Hayward with Robert Dudley, who is currently heading BP's oil spill response, sources close to the company also said.
Notably, Dudley previously served as head of the TNK venture, but was forced to depart after losing a bid to renew his Russian visa. The joint venture has been plagued by discord between BP and its Russian partners.
BP is due to issue its second quarter results Tuesday at 2 a.m. EDT.
Separately Monday, White House spokesman Robert Gibbs commented on potential regime change in BP's corner office, stating that whoever leads the company must meet its obligations to clean up the Gulf spill.
In Washington, retired U.S. Coast Guard Admiral Thad Allen told reporters that BP could begin drilling into the bottom of its blown-out Macondo well by the end of next week.
Allen, leading the U.S. government's spill response efforts, said that a "static kill" could start Aug. 2, followed by the start of drilling into the bottom of the stricken well "five days later."
Shares of BP closed nearly 5 percent higher, at $38.65 a share, in New York trade Monday. London shares also closed sharply higher.
--CNBC.com contributed to this report.