The officials requested anonymity to speak ahead of an announcement scheduled Thursday by Homeland Security Secretary Janet Napolitano, according to the Associated Press.
The government will no longer use shades of green, blue, yellow, orange and red to indicate terror threat levels.
The Obama Administration will introduce a replacement system, which will be called the National Terrorism Advisory System, by that April date.
It is expected to provide more targeted, specific warnings in the event of a terror threat. In some cases, it might be a one-page threat description sent to law enforcement officials describing the threat, what law enforcement needs to do about it and what the federal government is doing, one of the officials said.
One option under consideration is two threat levels: elevated and imminent.
The color-coded system developed after 9/11 has been criticized for being too vague.
The Associated Press contributed to this report.