Tottenham Hotspur's sporting director is reported to be undertaking a reduced role.
The paper claim chairman Daniel Levy has made him a scapegoat for the poor buys in the wake of Gareth Bale's sale to Real Madrid, with only Christian Eriksen and Nacer Chadli successes.
Baldini was brought in from Serie A side Roma months before Bale was sold, but he is claimed to be losing power at the club.
The report states: "Baldini’s role is understood to have been overtaken by the arrival of Paul Mitchell from Southampton as Head of Recruitment Analysis.
"Levy, meanwhile, is set to further support boss Mauricio Pochettino’s determination to provide a pathway for Tottenham’s academy players into the first team."
The Italian sporting director's poor buys include Paulinho, Etienne Capoue, Roberto Soldado and Erik Lamela, who have all failed to settle or show consistency despite occasional flashes of their ability.
Paul Mitchell was brought in from Southampton last year, whose success in identifying young talent has led to much improved results on the pitch for the Saints.
It's clear while spending big may not be the issue, the way they spent was certainly a succession of poor choices, and although Baldini may have a say, clearly he is not now entrusted to make calls solely.
If Mitchell proves himself a big hit, then the Italian's presence at the club could come into question altogether.