The decision was taken after a close door meeting of the environment and climate ministers on Thursday, Feb 25, night.
It was decided that an independent review of the grave errors in the IPCC reports should be conducted, along with the uproar created by Pachauri's curt response to critics.
According to a newspaper report, Pauchari's position could be at risk if the panel find mismanagement on his part.
The participants of the meeting held at the Annual Assembly of Governing Council of the UN Environment Programme's Governing Council in Bali were strictly warned against making the decision public, the report said.
The decision is likely to be announced after the UNEP and the World Meteorological Organisation, the two UN agencies that oversee the IPCC's work, have worked out IPCC's detailed scope and composition.
The IPCC, who have won 2009 Nobel Prize for its contribution in highlighting the dangers of climate change, have drawn heavy criticism for its erroneous predictions on climate change.