The entertainment company has managed the north London venue since April 2006. Event understands Wembley Arena owner Quintain is in talks with AEG Live for the company to become the arena's new operator, with an announcement to be made next year.
Live Nation says it now wants to focus on the music promotion side of its business, as well as running festivals in Europe.
Paul Latham, UK president of Live Nation, said: "We have been privileged to operate Wembley Arena, but we are focusing increasingly on promotion and new venues as we review our Europe-wide events calendar."
Live Nation will continue to promote major music acts at the venue, which has hosted performers such as Elton John and Madonna, as well as badminton and gymnastics during the London Olympics.
All events planned at the arena for 2013 will take place as scheduled.
AEG Live was recently awarded the contract to manage concerts in Hyde Park, which had previously been held by Live Nation.
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