The sources, quoted by wire services, said that the creditor banks and the insolvency administrator Wolfgang van Betteray will present a solution for a holding company to contain the profitable operations of Kirch at a press conference today.
It was reported on Friday that the Kirch was close to declaring insolvency after rescue talks in Munich and Los Angeles failed.
Shareholders rejected an €800m (£490m) plan backed by Rupert Murdoch's News Corporation and Italy's Silvio Berlusconi, which would have given the two media moguls control of Premiere, the loss-making pay-TV network, which has been a massive drain on Kirch.
Murdoch already holds 22% of Premiere through BSkyB. However, the stumbling block is that Premiere is thought to need around $1bn (£697.3m) in fresh capital, which News Corp does not want to provide.
Kirch also owns ProSiebenSAT.1, Germany's biggest TV broadcaster. Earlier reports have suggested this could fall to Italy's Silvio Berlusconi, causing a major political upset in Germany.
Kirch has been teetering on the brink of bankruptcy for days. Last week, shareholders gathered for last-ditch rescue talks, which broke up without agreement on how to save the company. Kirch is struggling with €8.8bn of debt and has had advisers looking at what assets it could dispose of to survive.
It was reported on Friday that a group of bankers might make a last-minute final attempt today to agree on a deal, but according to widely quoted sources involved in the negotiations, bankruptcy looks increasingly likely as investors run out of patience.
It was also reported at the weekend that Murdoch was poised to snap up the football rights to the World Cup for both 2002 and 2006. The prospect of a Kirch bankruptcy has already sending shockwaves through football in Germany. KirchMedia owns a four-year contract for broadcast rights to all German football teams, many of which would go out of business if the money from Kirch dries up.
However, the German economics ministry has said today that it was prepared to provide credit guarantees to soccer teams to keep them afloat.
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