The 57-year-old broadcaster has had his chat show indefinitely axed by the network in the wake of controversy over remarks he made about the killing of Charlie Kirk, and sources have now said he was facing uncertainty with bosses anyway.
Kimmel "had just months left on his deal with Disney and was set to start negotiations with bigwigs later this year", US news brand Page Six said in a report.
It said sources had told the outlet ABC "may have been getting ready to push him out after this season".
"Sources said the network could've used the furore over his outspoken nightly monologues to pull the plug early and avoid another year of Kimmel's controversial comments," Page Six said.
Kimmel was seen in Century City, Los Angeles, on Friday heading to meet his lawyer Karl Austen.
Austen's clients have included Seth MacFarlane, Jude Law, Dave Bautista and Jeffrey Wright.
According to Page Six, Kimmel could pursue a payout from ABC.
On 16 September, Kimmel said during his monologue: "We hit some new lows over the weekend with the MAGA gang desperately trying to characterise this kid who murdered Charlie Kirk as anything other than one of them, and doing everything they can to score political points from it."
ABC's parent company Disney faced criticism from Federal Communications Commission chairman Brendan Carr, who condemned Kimmel's comments about Tyler Robinson, 22, the man accused of killing Kirk.
Carr called for action against the host.
Sinclair, which operates the largest group of ABC affiliates in the US, issued a list of conditions for Jimmy Kimmel Live! to return to air, including an apology to Kirk's family.
Deadline has reported Kimmel was "unwilling to apologise for his remarks".
Right-wing activist Kirk, a political ally of US President Donald Trump, 79, was shot dead on September 10 while speaking at Utah Valley University.
Police said he died instantly from a single gunshot wound to the neck.
The killing of Kirk has intensified political divisions, sparked heated debate over gun violence and free speech, and placed renewed scrutiny on media, security, and public discourse in America.
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