Herbert Diess is expected to be named head of Audi's supervisory board next month, a traditional post for the VW Group CEO, a media report said.

Diess, who head of the VW brand since 2015, replaced Matthias Mueller as CEO of VW group last Thursday and is expected to replace Mueller as chair of Audi's 20-strong supervisory board at a meeting on 8 May, one day before the brand's annual general meeting, Reuters sources said.

"The supervisory board will take a decision on the chair at its next meeting," an Audi spokesman told the news agency which noted German magazine Automobilwoche had reported on Saturday Diess wanted to become Audi chairman.

Reuters noted the VW group CEO traditionally has headed Audi's supervisory board. It's the group's premium brand and most profitable unit.

German media also reported at the weekend VW had not cancelled Mueller's contract so he remains on the payroll until 2020. He earned EUR10m last year.