Rupert Murdoch will soon end his stint as chief executive of 21st Century Fox, potentially signalling a diminishment of his influence.

His younger son, James Murdoch, 42, will reportedly become the heir to the entertainment empire over his older brother, Lachlan.

Rupert, 84, will stay on as executive chairman, Murdoch-linked The Wall Street Journal reported. Lachlan is to become co-executive chair.

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“The matter of succession is on the agenda at our upcoming, regularly scheduled board meeting,” 21st Century Fox spokesperson Nathaniel Brown said in a statement.

James suffered during the phone hacking scandal in the UK, when he was boss of the Murdoch news business.

The 21st Century Fox company, which has annual revenues of more than $US30 billion, legally controls most of the Murdoch empire’s entertainment holdings, distributing such popular films as X-Men, Fantastic Four and Night at the Museum.

It is separate to News Corp, the worldwide Murdoch news division, which is linked to Australian media such as Foxtel and The Australian newspaper.

Mr Murdoch’s daughter, Elisabeth, was not been mentioned in the succession plans.

The timing of the transition has not been confirmed, although there are reports it may take place at a board meeting next week.

The handover will allay investor concerns, an analyst has predicted.

Fusion Strategy media analyst Steven Allen described the move as “smart”.

“Everyone’s been very anxious including a lot of shareholders because of the unique structure… not about Rupert’s ability, but about succession,” Mr Allen said.

“In succession, they’ve gone `right, we really have to get through the next couple of years and then have a distinct shift in generation’.”

Mr Allen said one concern in the new setup would be whether James and Lachlan could work successfully together.

“Shared responsibility in any big corporation is never a perfect recipe and when you’re siblings there’s not that many that work out.”

-with AAP.