Kelly has been linked to the series for a number of months following the departures of original hosts Adrian Chiles and Christine Bleakley.
According to The Mirror, Kelly now has the job and there are four men in line to join her on the breakfast sofa.
Former Strictly Come Dancing winner Chris Hollins, Katherine Jenkins's ex-lover Gethin Jones, Five News's Matt Barbet and ITV correspondent Keir Simmons are apparently the final four contenders for the gig.
A source told the tabloid: "Lorraine is a tried-and-tested favourite with viewers. Some will say that we're playing it rather safe by sticking with someone who is already a big daytime star for the channel.
"But the hope is that, in pairing her with a new male co-presenter, the whole offering will seem fresh and different and together they will draw in millions of extra viewers. The male presenter is crucial to this - we are keen to cast someone lesser known so he can 'grow' with the audience."
Daybreak, which is now being edited by David Kermode, is expected to be relaunched in the summer.
Dan Lobb and Kate Garraway are the current stand-in presenters on the show.
> Lorraine Kelly in top secret talks to host 'Daybreak'
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