Possible changes include an update to its content so that the print edition complements the website.
However, it is understood that a final decision on the free move has yet to be taken.
The changes would result in the print edition containing fewer listings and more content, such as features and reviews, funded by advertising.
The magazine has shown a decline in circulation in recent years, falling from 87,308 in the second half of 2007 to 55,032 by the end of 2011, according to ABC figures.
It is understood that Time Out is looking to increase its online presence to take advantage of the London Underground WiFi that has been installed for the Olympics.