The London outfit are lining up ex-technical director Alan Curbishley as a potential replacement for the German, according to the Daily Star.
Curbishley, who was sacked in February after just two months in the role, could reportedly take up the hotseat with current Under-21 coach Kit Symons as his deputy.
Magath has picked up just four points from his six matches in charge, and is said to have alienated Fulham's players with his "strict training and coaching regime".
Although the former Bayern Munich boss has insisted that he remain at the club next season, Fulham's owners are allegedly unconvinced that he will inspire a quick return to the top flight.
Fulham are currently rooted to the bottom of the Premier League table, five points off 17th-placed West Bromwich Albion, who have a game in hand.