Whitbread chief executive Alison Brittain (pictured) is expected to set out her position regarding the dividing of the company's hotel and coffee shop arms when its annual results are released on Wednesday.
Hedge fund Elliott Advisors was reported to be demanding that Whitbread spin off its Costa coffee chain from its Premier Inn business.
The Sunday Times reported that Brittain was not "philosophically opposed" to the split, with an announcement expected this week.
Elliott Advisors have built up a stake of more than 6% in the company.
Whitbread's chief executive had previously indicated she was "open minded" to changes in the company's structure.
Elliott is said to believe the split could create as much as £3b in value.
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