Romania's top court Monday cleared the way for the referendum, The Wall Street Journal reported.
Basescu, who has been engaged in a political battle with Prime Minister Victor Ponta, was impeached Friday by the Romanian Parliament.
The European Commission warned the Romanian government last week that steps taken to undermine Basescu are threatening the rule of law in the country. U.S. officials have expressed concern that the rule of law and democratic ideals are being ignored, the Journal said.
Ponta, a Social Democrat, said Romanians will vote July 29 on the referendum and "we hope for their voice to be respected."