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The president and Senate Democrats will propose the changes in a comprehensive bill, compared to some Republicans who want a more step-by-step reform, according to The New York Times.
Democrats purportedly want a plan that includes a path to citizenship for most of the 11 million illegal immigrants in the country.
They also said last week they will oppose measures that stop immigrants who gain legal status from eventually becoming citizens.
Obama and Congress already face two pressing issues: likely gun-control legislation following the 26 killings last month at a Connecticut elementary school and three major fiscal issues – the debt ceiling, massive spending cuts known as sequestration and reaching a budget resolution.
The president could outline the detail of his plan in his State of the Union address next month, according to The Times.
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