It is still unclear whether Trudeau will quit immediately or stay in power until a new leader is selected.

A recent public opinion poll showed Trudeau and his party would be defeated by Pierre Poilievre’s Conservatives if federal elections were held.

Canada is slated to vote to elect a new Prime Minister later this year.

Sources told The Globe and Mail that they don’t know definitely when Trudeau will announce his plans to leave but said they expect it will happen before a key national caucus meeting on Wednesday.

One of the sources, who spoke recently to the Prime Minister, told the newspaper that Trudeau realizes he needs to make an announcement before he meets the Liberal caucus so it doesn’t look like he was forced out by his own MPs.

The three sources told the newspaper that they are unsure about what the Liberal Party national executive plans to do to replace Mr. Trudeau as leader.

The fresh development comes just less than a month after Chrystia Freeland stepped down as the finance minister and deputy prime minister over Trudeau's policies.

Trudeau took over as the leader of the  Liberal Party in 2013.

The party was passing through a dark phase since it was reduced to third place in the House of Commons at that time.

One of the sources told The Globe and Mail that Trudeau discussed with Finance Minister Dominic LeBlanc whether he would be willing to step in as interim leader and prime minister.

The source said that would be unworkable if LeBlanc, as expected, plans to run for the leadership.

The political development in Canada is taking place at a time when US President-elect Donald Trump will soon take over his office on January 20.

Before taking charge of the post for a second term, Trump, who registered a massive victory in the polls last year, threatened to impose 25 per cent tariffs on Canadian goods until Ottawa clamped down on drugs and migrants crossing the border into the US.