Gowda is expected to step down tomorrow paving the way for Shettar, a 56-year-old Lingayat leader and Rural Development Minister, to take over as the Chief Minister, sources said.
As per the decisions reached at a series of meetings today, K S Eshwarappa and R Ashok may be made Deputy Chief Ministers. Gowda may be made party unit chief in Karnataka.
The decision to replace Gowda with Shettar, Yeddyurappa's close associate, was taken at BJP's Core Group and Parliamentary Board meetings today.
59-year-old Gowda, expressed readiness to quit, held marathon discussions with the BJP leadership, including L K Advani, Sushma Swaraj and Arunj Jaitley.
He will meet party President Nitin Gadkari tomorrow after which the decision will be announced.
Jaitley said the entire political situation in the state was discussed during over two-and-a-half hour meeting.
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"After the Chief Minister meets the party President, whatever the party's Core Group and the Parliamentary Board has discussed and decided, after consultations with the Chief Minister, will be announced tomorrow morning," Jaitley said.
Shettar will be the third Chief Minister in four years in Karnataka, the only southern state having BJP government, and his nomination will mark the second change in 11 months.
Gowda, who replaced Yeddyurrappa after the latter was removed in the wake of corruption charges, earlier said he was ready to quit whenever asked by the party high command.
"I have said whatever decision the central leadership takes, I am prepared to accept. That means if they ask me to quit the post, I am prepared. If they ask me to continue, I will continue," he told reporters after reaching here from Bangalore in the afternoon. (MORE)