Cohen testified before a grand jury last week, while Daniels is cooperating with prosecutors.
An indictment would begin a lengthy process that could last several months, as the case faces a mountain of legal issues and moves toward jury selection.
Trump has denied having an affair with Daniels and dismissed the investigation as a “witch hunt”. His Vice President Mike Pence described the investigation as a “politically charged prosecution”.
Trump is facing multiple criminal investigations at the state and federal level over possible wrongdoings that could jeopardize his new run at the White House.
In Georgia, a prosecutor is probing efforts by Trump and his allies to reverse a 2020 election loss in the southern state. The grand jury in that case has recommended multiple indictments, it was revealed last month.
The former president is also the subject of a federal investigation into his handling of classified documents as well as his possible involvement in the January 6 riots.
Some observers believe an impeachment is bad for Trump’s 2024 chances, while others say it could boost his support.