The budget for the overhaul is higher than what Disney spent to build the park six years ago.
Disney hopes the new design and attractions will increase the struggling park's popularity and clarify its identity.
About 6 million people visited the park last year. By comparison, about 15 million bought tickets to Disneyland.
"They're trying to give it some heart," a person familiar with the plan told the Times. "Right now, you go through California Adventure once and that's about it."
Rob Doughty, a Disneyland spokesman, declined to comment on the report.
Disney Chief Executive Bob Iger scheduled a new conference to explain details.
Favorite California Adventure attractions, including the Twilight Zone Tower of Terror, will remain but the park will also get new ones based on Pixar animated films like "Cars" and "Toy Story."
The entrance plaza will also be redesigned and iconic structures reminiscent of old-time Hollywood will be added, the newspaper said.