The Japanese vehicle manufacturer was due to break the plan as early as Tuesday morning, Sky News said. Production for Europe will consolidate in Japan in 2021, Justin Tomlinson, MP for North Swindon, said on Twitter.
Honda built just over 160,000 vehicles at its Swindon factory in southern England past year, where it makes the Civic and CV-R models, accounting for a little more than 10 percent of Britain's total output of 1.52 million cars.
Honda had no immediate comment on its plans.
Japanese carmaker Honda is set to announce the closure of its Swindon auto plant with the loss of 3,500 jobs, Sky News reported on Monday. It was also preparing to front-load some production at its plant to ship overseas or build up inventories.
That means a dwindling rationale to base manufacturing inside the European Union, and indeed, Honda plans to move production back to Japan rather than relocate elsewhere in Europe.
Although it was reported to be business-based decision by Honda, online commentators linked the expected shut-down to Brexit uncertainty.
Honda is expected to increase production in its home country of Japan to compensate for the Swindon closure. "We take our responsibilities to our associates very seriously and will always communicate any significant news with them first".
Honda, which has been building more cars for sale outside of Europe in recent years, said earlier this month its production volumes at Swindon would be reduced to 570 cars per day and that it would make job cuts.
Honda, for its part, declined to comment on the closure.
Labour MP Rachel Reeves, chairman of the Business, Energy and Industrial Strategy committee, described the how the closure would be "devastating for Swindon, for jobs, for the supply-chain, and for the UK's auto industry".
The Swindon plant produces more than 100,000 Civic models for customers all over the world, and is the firm's only factory in the EU.
United Kingdom vehicle manufacturers build about 1.5 million cars per year, so a Honda closure would cut out 10% of all United Kingdom production.
It would also come amid uncertainty surrounding the terms of future trade deals with the European Union.
Speaking in September, Ian Howells, the senior vice-president of Honda Europe, said the company remained "right behind" its production facility in Swindon and was not considering moving the plant out of the United Kingdom after Brexit.