According to unofficial sources, President Stjepan Mesic and Prime Minister Ivo Sanader on Friday evening agreed to relieve Podbevsek of duty.
Both Mesic and Sanader proposed that Tomislav Karamarko be appointed to the post.
The proposal will be submitted to the Parliament's Committee on Home Affairs and National Security for consideration.
Mesic and Sanader met behind closed doors at the President's Office and other details of the meeting are not known for the time being.
Mesic signed a decision to relieve Podbevsek of duty some 15 days ago, and Sanader recently stated that he would make a final decision on the matter after Podbevsek submitted a report to him.