The late TV presenter had been awarded the degree by the University of Bedfordshire in 2009 in recognition of his charity work.
"The board of governors' nominations and honours committee met last night to confirm that the honorary degree would be rescinded," a University spokesman told the paper.
They continued: "The honorary award was in recognition of his charitable fund-raising. It was given in good faith without the knowledge of the current very serious allegations."
It is reported that Savile had joked with University staff before the degree ceremony and said that he had "not been found out yet".
The BBC presenter was given the award by Professor Les Ebdon - the government's 'universities' watchdog' and director of the Office for Fair Access - who was vice-chancellor of the institution at the time.
A spokesman for Ebdon said that the politician was "not a personal friend of Sir Jimmy" and had only met the former Top of the Pops presenter on one occasion - at the degree ceremony.
Yesterday, the BBC confirmed that it plans to conduct two investigations relating to the sexual abuse allegations surrounding Savile. Police have also revealed that they have 340 potential lines of inquiry in relation to the claims, and a list of 40 potential victims.