Schumacher's manager Sabine Kehm has not responded to the latest report in Germany.
But if true, it means that Schumacher, 45, is out of danger from dying from his injuries.
Medical sources always said that there would come a point when doctors would have to inform his wife Corinna, brother Ralf and father Rolf that there is nothing more they can do for him.
A rehab ward means he will still receive the same massage therapy and muscle toning that he has been getting daily but that doctors no longer expect significant improvements – certainly in the short term – in his condition.
"Schumacher's transfer to a special rehabilitation clinic is being prepared and the chances of full recovery have dropped," said German magazine Bunte.
The Abendzeitung in Munich also quoted unnamed medical sources saying that he had been moved within the hospital.
06/13/14 (GMM) Michael Schumacher has been moved to a special rehabilitation unit at the hospital in Grenoble, according to the German weekly newsmagazine Bunte.
Last week, a private German rehabilitation clinic in Allensbach denied reports that it was already treating the seven time world champion.
The DPA news agency said 45-year-old Schumacher, who has been in a coma since a skiing fall in late December, is still at the Grenoble hospital.
But Bunte is reporting in its latest issue that, even though the former Ferrari and Mercedes driver's chances of recovery are now small, Schumacher is now being prepared for rehabilitation.
He has reportedly already been discharged from the neurological care unit at the Grenoble University hospital, and transferred to a unit specializing in rehabilitation treatment.
Citing clinical sources, Bunte added that Schumacher's next phase of treatment will prepare him for transferral to a specialist rehabilitation clinic.