A statement issued by NCAA President Mark Emmert indicated the governing body would hold a press conference at 9 a.m. Monday to announce "corrective and punitive actions" against the school.
The penalties came after an internal university investigation determined Penn State's late coach, Joe Paterno, had conspired to cover up child sex abuse allegations against former assistant Coach Jerry Sandusky.
Sandusky last month was found guilty on 45 counts of abuse involving 10 victims.
Paterno, the all-time winningest coach in NCAA Division I football history, was fired in November and died of lung cancer in January.
CBS Sports, citing unnamed sources, said the school will be hit with "unprecedented" penalties by the governing body.
The broadcaster said it seemed likely the penalties could be "so unique and severe they would be different than any previously applied by the NCAA" and could could last beyond one season.
The announcement came as a statue of Joe Paterno was removed from its site outside the Penn State football stadium for safekeeping.
Celebrity Breakups and divorces of 2014 [PHOTOS]