The South China Morning Post reported that Lam was expected to meet pro-establishment lawmakers at 4pm local time before a possible announcement that the bill will be withdrawn. The Chinese-backed news outlet HK01 said Lam was going to meet with lawmakers and they expected the bill to be withdrawn.
Reuters later said it had confirmed the reports with a government source.
Lam shelved the bill in June and in July again insisted it was "dead" after weeks of protest but refused to withdraw it entirely, a key demand of protesters.
She was hoping the tanks would roll in and make it easier to ram the bill down throats.
The bill would allow the extradition of suspects to mainland China's opaque legal system. The protests it sparked have since turned into a broader democracy movement that has challenged Beijing's authority over the semi-autonomous Chinese territory.
In recent weeks, protest have escalated and become increasingly violent on both sides, with protesters making use of petrol bombs while Hong Kong police have begun to deploy water cannon in addition to rubber bullets and teargas.
Earlier this week, Reuters published a recording of Lam speaking to a group of business executives in which she said she would step down if she were able to - suggesting Beijing has forced her to remain in office.
On Tuesday, however, Lam told reporters she wanted to remain in office for as long as she can
to see Hong Kong through such a difficult period.