Galliano, 50, recently completed a stint in rehab where he was treated for alcohol addiction.
His 18-year-old label is largely owned by Christian Dior SA, the company that fired him from his post as creative director last month.
The Telegraph said Friday the in-house design team at John Galliano is expected to continue creating future collections while Christian Dior SA decides the long-term future of the label.
Galliano is awaiting trial on a charge of public insult at the Paris High Court. He is accused of making anti-Semitic remarks during an altercation outside a Paris cafe in February.