Sherwood took over from former boss Andre Villas-Boas back in December, and after a strong start has seen results go against his team in recent weeks.
Spurs currently sit in 7th place in the Premier League with their hopes of Champions League qualification all but gone. They've also exited the League Cup, the FA Cup and the Europa League since the former Tottenham midfielder took charge.
Holland boss Louis van Gaal has been heavily linked with the hotseat at White Hart Lane, along with Southampton manager Maurico Pochettino and Ajax boss Frank de Boer.
While there has been no confirmation of who will take charge of Tottenham next season, according to Sky Sports News Sherwood has been told that he will not be manager next season.
Speaking to Sky Sports earlier, Sherwood refused to be drawn over his future, but seemed to hint that he wouldn't be in charge next season.
"I can't say much right now. What I can say is tonight is business as usual," he said.
"I'm setting this team up to win a football match for the benefit of the club and the 35,000 Spurs fans who will come and watch. I'll speak at a later stage."
The Daily Mail report that Sherwood, who has been a coach at Tottenham since 2008, will be offered a coaching role in order to continue his association with the club.
Spurs face Sunderland at White Hart Lane this evening.