Development of the device is already underway, Eurogamer said citing sources, with the console expected to be one that plugs directly into a TV and is pre-installed with several games.
The SNES had a number of popular games including "Super Mario World" and "Donkey Kong Country".
It follows on from the success of NES Classic Mini which it released last year. The console was a version of a classic NES that could be plugged into a TV and was pre-installed with 30 games. The $59.99 console was quickly sold out because Nintendo only made a limited number of the console. It was supposed to be a one-off production run.
As a result, some NES Classic consoles are on eBay for as much as $5,000.
Nintendo confirmed this week that it had discontinued the NES Classic Mini worldwide. The Japanese gaming giant is currently riding a wave of success thanks to hits such as the "Pokemon Go" mobile game last year and the NES Classic Mini.
The company was not available for comment when contacted by CNBC.
It is hoping the nostalgia around the brand can help boost sales of its newest console – the Nintendo Switch. The New York Times reported that Switch sales in its first two days in the Americas exceeded sales for any other system in Nintendo's history. Nintendo has sold 2.4 million systems in its first month and a half of sales, according to a recent report from analyst firm Superdata.