Monchi is expected to leave his role as Aston Villa president of football operations, Sky Sports News understands.
Former Real Sociedad sporting director Roberto Olabe has been identified as a candidate to come into Villa in a recruitment capacity, as the 57-year-old Monchi departs.
Monchi has been at Villa for just over two years and has formed a close relationship with head coach Unai Emery and director of football Damien Vidagany.
Monchi's work helped steer Villa into last season's Champions League, although they narrowly missed out on returning this campaign having finished sixth in the Premier League.
Among the players signed under his guidance are Morgan Rogers, Youri Tielemans and Amadou Onana.
Monchi also secured the loan signings of Marcus Rashford and Marco Asensio last season, while he brought Harvey Elliott and Jadon Sancho in on Deadline Day earlier this month.
It is not yet clear why Monchi is leaving the club at this time, with Villa in the Premier League's bottom three and yet to win after five games.
Villa did not comment when contacted by Sky Sports News.
However, it is understood that talks are ongoing with Olabe and the Spaniard is believed to be known to Emery and Vidagany.
Olabe was long linked with the job at Arsenal after Edu Gaspar left, but they ultimately hired Andrea Berta from Atletico Madrid.
It is not clear what Olabe's title would be at this stage and how his role might relate to that of Vidagany.
Vidagany is close with Unai Emery and hugely trusted by the head coach.
The news of Monchi's departure comes after Emery described his Aston Villa team as "lazy" and called on them to "recover their identity" after their winless start to the season continued at Sunderland.
Matty Cash's thunderous strike ended a run of 427 minutes without a Premier League goal at the Stadium of Light, but Wilson Isidor struck a late equaliser to earn the Black Cats a point in a 1-1 draw on Wearside.
Emery's side have not won a Premier League game since they beat Tottenham 2-0 at Villa Park on May 16 and sit in 18th place in the table after five games.
"We are not playing like I want," the Spaniard said in his post-match press conference.
"Of course we have to adapt some players in our structure and we will need time with them, but other players, they know how we want to try to control the game with the ball; it's with the ball, more than without the ball.
"We were conceding a lot of chances, chances starting with their goalkeeper. Long balls, second actions, corners in our box. And of course, like that, we are conceding chances.
"I told them the same thing I am telling you. We have to recover our identity. Of course, we have to try to recover our personality, confidence and personality to play.
"I am frustrated for how we played, how we are not feeling comfortable with our style."
Richards: No urgency from Villa - they are miles off it
Sky Sports' Micah Richards on Super Sunday:
"Villa need more. The urgency wasn't there [against Sunderland]. Everything was too slow. I thought they'd pick up the tempo in the second half and it just wasn't there. They didn't create enough.
"Something's not right at this moment in time. I believe the manager will get it right, but at this moment, they are miles off it."
