During a meeting last week, Yahoo CEO Marissa Mayer encouraged Tumblr's chief executive David Karp to decide which Yahoo senior vice president he would like to report to, suggesting a broader integration of the two companies, the report said.
Further integration of the two companies could face some opposition, as some of Yahoo's top executives believe Tumblr should retain more autonomy, the report added.
Yahoo acquired Tumblr in 2013 for a little over $1 billion. Mayer said in February the company's investment is paying off and that the short-blogging website is forecast to drive $100 million of Yahoo's revenue this year .
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The Information also said Simon Khalaf, the head of the Yahoo-owned start-up Flurry, is expected to be promoted to senior vice president.
Yahoo did not immediately respond to CNBC's request for comment.
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