GNM has hitherto been tight-lipped about the relaunch date of the country's oldest national Sunday newspaper.
The revamped, steamlined paper, designed by an internal team, follows speculation last year that the title could close or be sold off.
GNM commercial chiefs are understood to be gearing up to showcase the redesigned product to media agencies in the coming weeks.
The title is expected to retain its £2 price cover price and be redesigned as a four-section newspapers, made-up of news, sport, a review section and the Observer Magazine.
As part of GNM's bid to reign in costs, the group last year announced the closure of Observer Music Monthly, Observer Sport Monthly, and Observer Women. The Observer Food supplement will continue as a monthly offering.
The relaunch follows GNM, publisher of The Guardian and The Observer, posting a £57m pre-tax loss in the year to March 2009.
In the accounts, the group pointed to the fact that The Observer "continued to perform well".
According to the latest Audit Bureau of Circulations (ABCs) figures for February, The Observer recorded a circulation of 372,669 - down 12.43% on the year.
However the figure is impacted by The Observer's decision last year to strip out its bulk copies. Across the Sunday market, its circulation is ahead of the Independent on Sunday but lags behind the The Sunday Times and The Sunday Telegraph.
GNM declined to comment on the proposed relaunch date.
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