The show is currently undergoing a revamp following the departure of previous judges Jennifer Lopez and Steven Tyler and Jackson will now also leave the panel, according to TMZ.
However, he is expected to stay on the show as a "mentor" to contestants.
Some sources have clamed that producers are unsure whether Jackson will be a good mentor, but are keen for him to remain involved with the show.
Mariah Carey has already signed up for a role on the American Idol panel, but it is not yet clear who will join her for the new season as executives have reportedly decided to have four judges for the new episodes.
Nicki Minaj is reportedly close to landing a job on the series, despite rumours that Carey is unhappy with her appointment. TMZ claims that the show's producers are hoping for tension between the pair.
Elsewhere, P Diddy and Kanye West had also been rumoured for jobs on the show but are apparently no longer in the running.
Alanis Morissette and Nick Jonas are among the other stars who have been linked to the American Idol panel, while Nigel Lythgoe has reportedly agreed to return as an executive producer on the new season.