Cahill arrived at the club in February having just helped Australia to glory in the Asian Cup, and much was expected of the former Everton and New York Red Bull forward.
However, he has failed to put in performances that back up the $US4 million contract that he was handed, scoring just one goal in 13 appearances.
According to SBS, Shanghai Shenhua have assigned an agent to find a replacement for Cahilll, with the club not satisfied with his contribution. The league's transfer window opens on Monday, and Cahill could find himself on his way as early as next week as a result.
Speaking after Australia's World Cup qualifier against Kyrgyzstan on Tuesday, Cahill conceded that he had not made the impact that he would have like in China.
"I'm not going to say I've hit the ground running but I'm not going to say I haven't put in a shift," he said .
"It's been an up-and-down season but I think that's the way it goes in China. I've only been there four months and I've learned a lot in the short space of time that I've been there."
Despite this, the 35-year-old is confident that he will soon find his shooting boots once more.
"They will come, I think, but it all depends on how we play and the style," he asserted.
"But honestly, it's never bothered me. I had the same in New York when I went there. In my first year, I just tried to get settled. In my second year, we won the club's first piece of silverware in 18 years."