Scolari will leave Guangzhou Evergrande at the end of this season, according to reports from the Southern Daily.
The former World Cup champion understands the identity of his successor, reports say that.
Scolari took over as head coach at Guangzhou Evergrande in June 2015 and has guided the club to two Chinese Super League titles and an AFC Champions League triumph.
The 69-year-old is contracted to Guangzhou Evergrande until the end of next year, but last month he insisted not thinking about retirement.
The name to be listed as the best candidate to replace Scolari at Evergrande would be former Bayern Munich coach Carlo Ancelotti.
Although Scolari had advised Ancelotti to be his successor, the Italian has denied any link between him and the Chinese Super League’s side.