Unnamed sources told the New York Times that the insurance firm has now chosen to work with Bank of America and Citigroup instead.
The firm is thought to have held meetings with its two new advisers earlier in the week.
According to the news provider, a number of other organisations from the US and Europe are rumoured to be reconsidering their working relationship with the bank following the accusations of fraud levelled by the Securities and Exchange Commission (SEC).
AIG is expected to work with the two banks to assess which business units can be sold off as part of a wider strategy to repay the government for bail-out money used during the financial crisis.
The SEC accused Goldman Sachs and vice-president Fabrice Tourre of defrauding clients by neglecting to provide the full details of an investment product related to subprime mortgages.
Representatives from the bank are now thought to be in talks with the SEC to settle the charges levelled against it.
By Jim Ottewill