After weeks of internal turmoil that saw its permanent secretary and four other members step down from their duties, the Academy might not award the prestigious prize in 2018.
A source within the Academy tells Swedish Radio's culture desk that time may be needed to regain some trust following the scandals within the group that led to five members, including the former Permanent Secretary Sara Danius, to step down from their duties.
Although the five have resigned recently, they remain on the board since appointments to the Academy are for life. The Swedish King though has said he would change the rules for the 18-member board to allow people to fully leave the Academy.
When asked for a comment on Wednesday the current interim head Anders Olsson told Swedish Radio that, "We'll get back to you on that question. We're working on it right now."
The fallout stems from an investigation into sexual misconduct allegations at the Academy by a man who is married to a member. The Academy stated that the abuse was "not generally known" to it and expressed regret over the events.
Many - including journalists, writers and others within the arts - believe the scandal has tarnished the group and the Nobel prize's reputation.
The public also has shown support for Danius, who many believe was forced to take the fall for the sexual abuse carried out by the man. Last week, thousands gathered outside the Swedish Academy's offices in Stockholm, calling for all of its remaining members to resign.
The Nobel Prize in Literature has been awarded 110 times to 114 Nobel Laureates between 1901 and 2017. No prize was handed out in 1914, 1918, 1935 and from 1940 to 1943.
Swedish Academy makes police report, apologises1:30 min 1:30 min
Thousands to protest outside Swedish Academy meeting1:55 min 1:55 min
King moves to ease dead-lock in Swedish Academy1:44 min 1:44 min
Academics call for "rebooted" Swedish Academy to increase legitimacy7:27 min 7:27 min
Head of Swedish Academy steps down2:49 min 2:49 min
Swedish Academy's war of words heats up2:19 min 2:19 min
Details of Swedish Academy crisis emerge2:23 min 2:23 min
Swedish Academy rocked by its biggest crisis2:06 min 2:06 min
Swedish Academy cuts ties with man accused of sexual assault1:44 min 1:44 min