The Chinese government is developing a plan to replace Hong Kong chief executive Carrie Lam with a possible successor who could be installed by March, reports the Financial Times, quoting sources.

The newspaper quoted "people briefed on the deliberations," who said if Xi Jinping, China's president, moves forward on replacing Lam, her successor would remain in place until the end of her term in 2022, and not necessarily stay on for a full five-year term afterwards.

The sources told the newspaper the leading candidates to replace Lam are Norman Chan, who formerly headed the Hong Kong Monetary Authority, and Henry Tang, who has been financial secretary of the territory and chief secretary for administration. Tang is the son of a textile magnate.

Asked by CNBC if there are plans for a leadership change, a representative of the Hong Kong's Chief Executive's Office said it would not comment on speculation. A representative for Tang told CNBC in a statement, "Mr. Tang does not comment on speculation. He supports Carrie Lam as CE."

Reuters reported that China's foreign ministry called the Financial Times report a political rumor with ulterior motives.