Government sources have denied media reports that media regulator Ofcom will take over the regulation of the BBC, the Guardian reported.
The newspaper, citing sources, added that industry experts will be appointed to help decide on a wide-ranging review of the broadcaster.
Sources close to the government told the Guardian that the forthcoming green paper on the BBC is likely to call for the abolition of the BBC Trust without backing an alternative regulator.
"To say a decision has been taken is just nonsense," the newspaper quoted one of the sources as saying.
Multiple news outlets earlier reported that the government was planning to axe the powers of the BBC Trust and replace them with Ofcom – the watchdog for the telecoms and commercial media industries. The BBC has never been governed by an external body throughout its nearly century-long history.
The axeing of the Trust's powers comes as part of the renegotiation of the BBC Charter.
Culture Secretary John Whittingdale earlier noted that BBC needed a "very robust system in place" to deal with issues of impartiality.
Rona Fairhead, the chairman of the Trust, earlier suggested that the Trust should be replaced with a new "bespoke" body dedicated to the regulation of the BBC.
"Ministers are currently considering a range of options for how charter review will be conducted and an announcement will be made in due course," a spokesperson from the Department for Culture, Media and Sport said.
"There is no set process, but of course we are determined to conduct a robust and thorough process, with significant opportunities for the public to contribute. All aspects of the BBC are up for debate as part of the charter review."
The BBC Trust, which was formed less than a decade ago to govern the broadcaster, has recently been criticised severely over a number of scandals. The governing body was criticised for its role in investigating the Jimmy Savile scandal and for making false allegations against Lord McAlpine.
The Trust also faced criticism over its 'generous' payoffs to departing executives, and its members' high-profile jobs, including Fairhead's directorship of HSBC, which has been at the centre of a tax evasion scandal.