Yahoo will consider spinning off its ownership in Yahoo Japan and leaving the Alibaba stake, the sources indicated. The company is likely to decide in the next few weeks on its new plan.
A Tuesday filing showed that the the Securities and Exchange Commissions had informed Yahoo that it will not rule on whether the planned Alibaba spin would be tax-free.
Yahoo stock opened Wednesday trading about half a percent lower.
—CNBC's David Faber contributed to this report.