Channel 9 has used the highly lucrative morning show slot as bait to sign Kruger, along with the hosting role on the rejuvenated Big Brother, the Herald Sun reported.
Despite 44 years with Nine, Kennerley's future with the network is now uncertain.
Andrew Daddo is also tipped for a high-profile role on the new-look morning show, as the network attempts to compete for advertising dollars with Seven's Morning Show, Ten's The Circle and its new breakfast show.
Rumours Kennerley was on the way out have circulated for months as her show struggled against its opposition.
Asked if she had heard about Kruger's move to Nine, including involvement with Big Brother and Mornings with ... Kennerley said: "Absolutely not.
"They (Nine) are tossing stuff around. They know exactly what they are doing," she said.
Asked if she had re-signed with Nine for next year, Kennerley wouldn't answer the question, adding: "I'm not going there at all."
A TV insider said Kruger signed with Nine this week.
When contacted yesterday, Kruger said: "Sorry, I'll have to speak to you soon," before the phone line dropped out.
Gaining Kruger - one of Seven's most popular stars - is a coup for Nine and will leave a gaping hole in the highly successful Dancing With the Stars line-up when it returns for a 12th season.
Though Kruger started her TV career at Nine, she has been with the Seven network since 1997. Her contract ended in late October.
She is said to be eager to try something new after working on Dancing since it began in 2004, but Seven was unable to offer anything to keep her on its books.
Kruger also reportedly put her hand up to host the original Big Brother, but that role went to Gretel Killeen and then later Kyle Sandilands and Jackie O.
Seven has already begun casting for the next series of Dancing so it is unlikely to be scrapped because of Kruger's sudden departure. The series survived host Daryl Somers' decision to bow out in 2007 when he was replaced by Daniel MacPherson.
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