News website Delfi speculated that Prime Minister Andrus Ansip could announce his resignation from the government on February 23.
According to Delfi, Ansip did not confirm nor deny the speculation.
Ansip's resignation will lead to the whole government stepping down, with Delfi further speculating that Siim Kallas could be elected to lead the Reform Party a week later at a party congress.
Kallas will then form a new Cabinet with either IRL or the Social Democrats or both. The Reform Party has 33 seats in Parliament, followed by IRL with 22, the Center Party with 21 and the Social Democrats with 19.
A liberal-left coalition of the Reform Party and the Social Democrats would not have commanded a majority after the last elections in 2011, but a number of ex-Center Party MPs have boosted Social Democrat's ranks in Parliament, and the two could, in theory, form a majority government.
The next parliamentary elections will take place on March 1, 2015.