Cleveland have carried the 'Indians' nickname for 105 years.
The move comes after the NFL's Washington team bowed to public pressure and announced it would change its name.
The issue of racial inequality was amplified this year by the voices of U.S. athletes following the high-profile deaths of Black people in police custody.
The decision is likely to be announced officially this week, US media reported, but the team is expected to continue to use their current name for the 2021 season before a transition in 2022.
The 105-year-old name has long faced criticism from Native American groups and some portions of the team’s fanbase.
Calls to move away from names that have roots in racial discrimination grew louder with the massive Black Lives Matter protests this summer, culminating in the Washington “Redskins” officially changing their name in July.
President Donald Trump criticised the move, responding on Twitter: “Oh no! What is going on? This is not good news, even for 'Indians’. Cancel culture at work!”
In July, the Cleveland Indians announced that they were considering a name change after the police killing of George Floyd sparked a debate over racism in America.
“We are committed to making a positive impact in our community and embrace our responsibility to advance social justice and equality,” the team said in a statement at the time. “Our organisation fully recognises our team name is among the most visible ways in which we connect with the community.”
Join our new commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies