UPDATE: Now E! online has also independently verified that NBC is planning to move Jay Leno out of the 11:35 p.m. time slot within the next year.
Maybe Jay Leno isn't the Freddy Krueger of late night after all. If The Hollywood Reporter's sources are correct, his reign at 11:35 p.m. may finally be coming to a close... for real this time.

THR is reporting that, according to "two high-level industry sources," NBC will announce in May that Jimmy Fallon is replacing Leno in 2014. While the network still denies the rumor as "categorically untrue" -- the possible change was first reported last December -- the sources explained the rationale is in part the result of stiffer competition for a younger audience.

Sources believe the network will bring in Fallon partly out of concern about the competition on ABC, which moved younger-skewing Jimmy Kimmel to the 11:35 time slot in January.... Leno's 'Tonight' still performs well for NBC, regularly besting his late-night rivals. But Kimmel is competitive in the 18-49 demo.

With NBC falling to an unprecedented fifth place, the network is likely to put all options on the table. Moving Fallon to the coveted spot may allow NBC to fight demographic fire with fire.

Both Fallon and Kimmel have found ways to give their shows life beyond their time slot by creating segments that seem custom-made for Internet sharing. Kimmel's show got a boost from the one-two punch of "F*cking Matt Damon" and "F*cking Ben Affleck," while Fallon has spun viral gold with comedy bits like Neil Young singing "Pants On The Ground" and memorable guest segments such as the recent "Evolution Of Mom Dancing" with Michelle Obama.

Of course, this news raises several questions. First and foremost, "Is this for real?" Second, will Fallon move production to Los Angeles or stay in New York to avoid he and his staff getting Conan'd? Third, and perhaps most importantly, if Fallon goes to "The Tonight Show," who takes over the "Late Night" slot?

If you're betting, we'd say put your money somewhere in Tina Fey's general vicinity. After all, she signed a four-year contract with NBC late last year.

"Late Night With Tina & Amy"? Works for us.

Read the full story on Fallon potentially replacing Leno at The Hollywood Reporter, and let us know what you think of the possible shakeup in the comments.

Also on HuffPost:

Loading Slideshow...

  • Saturday Night Live Audition

    Jimmy Fallon's life changing audition from 1998 may have only lasted for 8 minutes, but in that time he crammed in over 20 flawless impressions.

  • 1998 Featured Player

    In one of his first appearances, in the first episode of the 24th season, Jimmy sings alongside Colin Quinn on Weekend Update.

  • Saturday Night Live 1999

    Debuting one of his signature characters, 'Nick Burns, Your Company's Computer Guy' with guest host, Jennifer Aniston.

  • The Boston Teens

    Playing another one of his signature characters, Pat Sullivan (Sully) as Rachel Dratch plays his girlfriend, Denise McDenna.

  • A Flawless Impression

    A memorable moment in September, 1999 when Jimmy Fallon does Jerry Seinfeld better than Jerry Seinfeld.

  • Weekend Update

    Jimmy Fallon and Tina Fey teamed up to do "Weekend Update" in September, 2000 and made a perfect pair.

  • Holiday Special

    This "Season's Greeting" recurring skit beginning in January, 2000 provided laughter and music.

  • Jarret And Gobi

    Jimmy Fallon and Horatio Sanz had great chemistry as two college slackers in this, "Jarret's Room" skit, premiering in 2000.

  • The Bloater Brothers

    In February, 2000 Jimmy Fallon as Kip and Chris Parnell as Wayne, are two brothers who do not know when to stop with obnoxious jokes.

  • Another Amazing Impression

    In December, 2001 Mick Jagger as himself and Jimmy Fallon as Mick Jagger's reflection in this hilarious sketch.

  • Cracking Up

    Jimmy Fallon cannot keep a straight face in this 2001 sketch, but can you blame him? Just look at Will Ferrel.

  • Fallon and Fey at 54th Annual Primetime Emmy Awards Backstage

    Tina Fey and Jimmy Fallon, with the Outstanding Writing for a Variety, Music or Comedy Program Emmy award.

  • Joey Mack

    Jimmy Fallon as the hilarious radio dj, Joey Mack in this "Z105" skit with Eric McCormack in 2002.

  • Oh My God! Randy!

    In this 2002 "Wake UP Wakefield!" sketch, Jimmy plays Maya Rudolph's ultimate high school crush, Randy Goldman.

  • Taxi

    With Queen Latifah in 2002 filming scenes for

  • The Barry Gibb Talk Show

    In October, 2003 Jimmy Fallon and Justin Timberlake are the perfect duo to play brothers, Robin and Barry Gibb. Thankfully this became a recurring sketch.

  • 45th Annual Grammy Awards

    In 2003 Jimmy Fallon was nominated for a Grammy for his comedy album, <em>The Bathroom Wall</em>. This is him at the award show.

  • Top O' The Morning

    In this 2003 recurring sketch, Fallon and Meyers play two Irish brothers, Patrick Fitzwilliam and William Fitzpatrick, hosting a morning talk show. Here they are joined by Ray Liotta as Sean Quinland.

  • Jimmy's Last Episode

    The season 29 finale marked Jimmy Fallon's departure from "Saturday Night Live." <em></em>This "Grease" parody sketch was his goodbye.

  • Premiere Of "Fever Pitch"

    Jimmy Fallon and Drew Barrymore attend the World Premiere of their new movie 'Fever Pitch' April 6, 2005 at Fenway Park in Boston, Massachusetts.

  • 2005 MTV Movie Awards

    Jimmy Fallon served as host for the 2005 MTV Movie Awards in Los Angeles, California.

  • Factory Girl

    Proving his talent as an actor with Sienna Miller on the Set of 'Factory Girl' - November 20, 2006 in New York City. Jimmy played, Chuck Wein.

  • Jimmy And His Wife, Nancy Juvonen

    Juvonen is a film producer who owns the company, Flower Films, with Drew Barrymore. The two met while filming "Fever Pitch" and married in 2007.

  • 2008 Sundance Film Festival

    At the screening of, "The Year Of Getting To Know Us" in 2008 at Sundance. Jimmy played, Christopher Rocket, alongside Tom Arnold , Sharon Stone, and Lucy Liu.

  • Late Night with Jimmy Fallon Premiere

    The show debuting, March 2nd, 2009 started off with a bang, with guest, Robert DeNiro, and performer Justin Timberlake.

  • His First Monologue!

    Totally killing it.

  • Double Dutch With Rosario Dawson

    Proving he's got more than a good sense of humor in this February, 2010 show.

  • Late Night with Jimmy Fallon

    LATE NIGHT WITH JIMMY FALLON -- Episode 190 -- Pictured: (l-r) Jimmy Fallon plays beer pong with Jessica Alba on February 3, 2010 (Photo by Dana Edelson/NBC/NBCU Photo Bank via Getty Images)

  • Always Surprising His Guests

    Interviewing Emma Stone in September, 2010.

  • Getting Messy

    Getting his guests into sticky situations in this July, 2010 show.

  • Work It Jimmy!

    Showing his smooth dance moves with Cedric the Entertainer on June 15, 2010.

  • Space Men

    Acting the part of an astronaut, in a sketch with Sir Ben Kingsley on May 24, 2010.

  • Jacob's Patience

    In a hilarious sketch with Zach Galifanakis on November 3, 2010 in which the two are forced to use mannequin arms as opposed to their actual arms. Chaos ensues.

  • Jason Sudeikis Visits "Late Night With Jimmy Fallon"

    Jason Sudeikis and Jimmy Fallon playing around during a taping of 'Late Night With Jimmy Fallon' on September 1, 2011.

  • Neil Patrick and Chris Kattan Join The Fun

    Neil Patrick Harris, Steve Higgins, and Chris Kattan posing during a visit 'Late Night With Jimmy Fallon' at on July 27, 2011.

  • Ryan Gosling And His Dog Make The Perfect Guests

    On July 20, 2011 Ryan Gosling brought along his dog, George to accompany him on "Late Night With Jimmy Fallon." Fun was had by all.

  • Dynamic Duo

    Jimmy Fallon as, Neil Young, Performs "Sexy And I Know It" alongside Bruce Springsteen on March 2, 2012.

  • Dance To The Music

    Jimmy Fallon during Bruce Springsteen and the E Street Band's performance with The Roots on March 2, 2012.

  • Barack Obama Visits!

    President Barack Obama laughs as he tapes an appearance on the "Late Night with Jimmy Fallon" at Memorial Hall on the University of North Carolina campus in Chapel Hill, N.C., Tuesday April 24, 2012.

  • Tug Of War With Michelle Obama

    First lady Michelle Obama participates in a tug of war with Jimmy Fallon in the Blue Room of the White House during a taping of "Late Night with Jimmy Fallon," for the second anniversary of the "Let's Move!" initiative on Jan 25, 2012, at the White House in Washington.

  • Looking Good!

    Having fun with Zooey Deschanel on November 19, 2012.

  • Splish Splash

    Robert Pattinson and Jimmy Fallon play 'Water War' during a taping on November 8, 2012.

  • Tina And Jimmy, Together Again

    Jimmy showing off some of Tina's glamour shots, on February 28, 2013 in New York City.

  • Dance Moms

    This hilarious sketch aired on February 22, 2013 and was part of Obama's Let's Move Campaign. Both Jimmy and Michelle have some serious skills.

  • Justin Bieber giving bunny ears to Jimmy Fallon on February 5, 2013 in New York City. We'd be scared to.