Producer Brett Ratner is due to present his pick for host to the Academy of Motion Picture Arts & Sciences next week, and is expected to select Murphy as his top choice.
"Nobody knows movies better or is a bigger cinephile than Eddie. Not Brett. Not even Quentin Tarantino," an insider told Deadline. "He can bring all that experience to hosting. Plus he has Saturday Night Live experience before a live crowd."
While no deal with Murphy is in place as yet, the Trading Places star is said to be "showing interest" in hosting the prestigious event.
Murphy recently worked with Ratner on the director's upcoming action comedy Tower Heist.
James Franco and Anne Hathaway hosted the 83rd Academy Awards ceremony earlier this year, to a mostly negative reception.
An official announcement regarding the host for next year's Oscars ceremony is expected later this month.
Watch Eddie Murphy in the trailer for Tower Heist below: