The Bantams have endured a miserable season and sit rock bottom of League One, 14 points from 20 games.
Rahic has been in day-to-day charge at Valley Parade since the 2016 takeover with Rupp, who owns 78 per cent of the club, prepared to remain in the background.
However, with supporters in open revolt against Rahic and the financial picture so bleak, Rupp is understood to be ready to call time on his fellow countryman’s stay in English football by buying out his minority shareholding.
Julian Rhodes, brought back in an advisory role last month, will meet Rupp on Monday afternoon and it is expected that the lifelong fan and former owner will be asked to run the club.
Rupp is also due to sit down with head coach David Hopkin, who the German recently backed publicly as the “man to take us forward in the long term”, before returning to Germany on Wednesday. Rahic, who is believed to have been in Germany for the past fortnight, will not be present for the talks.
City head to Peterborough United today in the FA Cup and victory will bring a welcome tonic both in terms of lifting morale and providing a much-needed boost to the coffers.
Progress to the third round would earn the Bantams, understood to be facing a heavy financial loss this season after making 20 signings, £54,000 in prize money plus the chance of landing a lucrative glamour tie.