The broadcaster's current deal for The X Factor, a Saturday night staple since 2004, expires next year, after series sixteen.
Chiefs recently announced a refreshed judging panel, with Simon now joined by newcomers Louis Tomlinson, Robbie Williams and Ayda Field.
However, with ratings sliding to new lows last year, it is unclear how much longer the show can last.
Now the Daily Star suggests ITV is eyeing newer music formats that could replace X Factor - such as The Final Four.
According to the newspaper, the growing competition from rival shows is partly why Simon decided to shake up the panel.
"ITV are hopeful X Factor’s new look will get big numbers but they are always looking for bright new shows," a source said.
"The Four has the same glitzy feel as The X Factor."
Created by Israeli firm Armoza Formats, The Final Four features the titular final four contestants positioned in the studio on elaborate chairs.
New contestants audition, and if the judges approve, they then challenge one member of the four for their place.
Those remaining in the chairs at the grand finale then go head-to-head to win a recording contract.
The show is already a hit in the United States, where it airs on FOX under the name 'The Four: Battle For Stardom'.
The American version has three superstar judges: Sean Combs (a.k.a. P Diddy), Meghan Trainor, and DJ Khaled.
It is currently airing its second season, which has featured former Stereo Kicks member James Graham as a contestant.
Simon is already well aware of The Four, having reportedly threatened Armoza with legal action last year.
His firm Syco claimed that The Four is a rip-off of X Factor's controversial Six Chair Challenge round.