Kuala Lumpur, Sep 21 G. Palanivel, who successfully defended his post as the deputy president of the Malaysian Indian Congress (MIC) on Monday, may be the next chief of the group, media reports said.
Palanivel is currently visiting India and talks may take place once he returns home.
But long-time incumbent S. Samy Vellu, under pressure to step down, says there will be "many problems" if he quits immediately.
"I will step down if Palanivel feels he's ready to take over," Star Online quoted Vellu, who has been leading the party for nearly three decades, as saying.
Vellu will soon meet Prime Minister Najib Tun Razak, who is the chief of the ruling coalition Barisan Nasional (BN) of which the MIC is an important constituent.
MIC has traditionally spoken for Malaysia's nearly two million ethnic Indians who settled here during the British era and form nearly eight percent of the 28 million multi-racial population.
"I am ready to let go (of the position). I am ready to go. Monday... or even tomorrow if Palanivel feels that he is ready to take over the party leadership. I am ready to pass the leadership to him."
Vellu, who became party acting president in 1979 before elected as MIC president in 1981, was re-elected for his 11th consecutive term in April. As such his term is to last till 2012.
But he has been under pressure to step down since the party fared badly in the general election last year. It was reduced to three members in parliament and Vellu himself lost his re-election.
However, there are indications that the prime minister may force the issue when he meets Vellu.
But Razak has said that he did not want to be seen as "interfering" in MIC's affairs.