Sven-Goran Eriksson is in talks with Shanghai SIPG about his future as the Chinese Super League club's head coach, according to Sky Sports.
The Chinese season ended last weekend with Shanghai SIPG in third place, 12 points behind champions Guangzhou Evergrande.
That is believed not to be good enough for the club's ambitious owners, after they spent £45m on signing Brazil striker Hulk in the summer.
Eriksson has one year left on his £4m-a-year contract and wants to stay in Shanghai, but his employers have been holding discussions with former Chelsea and Tottenham boss Andre Villas-Boas, who according to reports in China, has been in the country this week.