About a dozen ministers and state councillors are expected to step down after the National People's Congress next month.
Sources said the revamp of the central Government would also see the abolition of up to eight ministries. A new premier and state council will also be elected at the session.
Qingdao Communist Party Secretary Yu Zhengsheng is expected to succeed Hou Jie as Construction Minister and the Congress will formally endorse Chen Zhili as the new Director of the State Education Commission, replacing Zhu Kaixuan.
Three State Councillors - Li Guixian, Song Jian and Chen Junsheng - are tipped to join the Chinese People's Political Consultative Conference (CPPCC). Their colleague, Peng Peiyun, will either join the All-China Women's Federation or the Congress as a vice-chairman.
Ministers who will join the CPPCC are State Planning Commission Director Chen Jinhua, Electronics Minister Hu Qili, Coal Industry Minister Wang Senhao, Personnel Minister Song Defu and Electricity Minister Shi Dazhen.
Sources said Vice-Premier Zou Jiahua would step down and join the Congress. There will only be four vice-premiers in the new government and all are incumbents - Li Lanqing, Wu Bangguo, Jiang Chunyun and Qian Qichen.
It was almost certain Vice-Premier Zhu Rongji would succeed Li Peng as the next premier.