Julie Larson-Green could be put in charge of Microsoft's entire hardware engineering arm – including Surface tablets and Xbox consoles.
She is currently in charge of Windows at the company. Larson-Green is now in pole position to lead hardware engineering, a role that Don Mattrick was previously favourite for, reports Bloomberg, as covered by MCV.
It could mean there will be no direct replacement for Mattrick at Microsoft. He recently departed Microsoft to join Zynga.
Bloomberg however states that the restructuring of Microsoft's senior management has not yet been finalised, and Xbox chief Steve Ballmer may still shuffle roles.
Tony Bates, the previous president of Skype, may also take charge of acquisitions and relationships with software developers for Microsoft.