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The Burnley-born fast bowler, who is England's leading wicket-taker, is reportedly set to leave Old Trafford at the end of the season, despite another outstanding County Championship campaign.
Anderson, 44, continued playing county cricket after being forced into international retirement in 2024.
According to The Times, Anderson will not be given the chance to extend his remarkable Old Trafford career into 2027.
It remains unclear whether Anderson will retire or seek to continue playing elsewhere.
He captained Lancashire in the County Championship this season, but the Red Rose finished second from bottom in Division Two.
The decision comes during a period of significant change at Old Trafford, where Lancashire are reviewing cricket operations under interim chair Dame Sarah Storey and new chief executive Richard Kenyon.
Paul Farbrace recently became director of cricket at the club.
Despite his age, Anderson showed little sign of decline in 2026.
He claimed 50 County Championship wickets in Division Two, and was named Lancashire's Championship Player of the Year.
Anderson's contribution to Lancashire has been immense.
He has taken 443 first-class wickets for the county, alongside 83 in List A cricket and 50 in T20s, having first represented the Lancashire Cricket Board as a 17-year-old in 2000 before making his Lancashire debut the following summer.
His achievements on the international stage place him among cricket's all-time greats.
Across a 23-year England career, Anderson claimed 991 wickets in all formats, with only Muttiah Muralitharan and Shane Warne taking more in international cricket.
In 2024, he became just the third bowler in Test history to reach 700 wickets and retired with 704, the most by any fast bowler.
Later that year, Anderson ended his England career after being informed by coach Brendon McCullum, captain Ben Stokes, and director of cricket Rob Key that it was time for the team to move on.
His 188th and final Test appearance came against West Indies at Lord's before a brief spell as England's bowling consultant.
Anderson signed a new Lancashire deal in 2025 and indicated he could continue playing county cricket for another three seasons.
He was knighted for services to cricket that year and went on to take the Lancashire captaincy on a permanent basis ahead of the 2026 campaign.
Those close to Anderson were understood to be unaware of the situation as reports of his impending Old Trafford exit emerged on Wednesday.
Lancashire have yet to comment publicly.