It will also update hardware for Mac laptops and desktops.
The new features to be added to iPads include wider operating-system support for Apple’s stylus accessory, people familiar with the matter told Bloomberg.
It is also looking to add new features to Mac laptops and desktops by improving their hardware performance.
The hardware update includes new versions of the iMac desktop, MacBook Air laptop, and a 5K standalone monitor in collaboration with LG Electronics, apart from a thinner MacBook Pro laptop, the publication reported.
The Cupertino, California-based technology giant expects to introduce the new software updates to iPad next year, while the Macs are expected to be available by late 2016.
Apple has not released updated Macs over the past 12 months, exclduing the 12-inch MacBook.
The company saw its iPad sales declining for nine consecutive quarters but the average selling prices increased in the third quarter of the fiscal due to a jump in sales of pricier iPad Pro models.
Overall, it reported a 14.6% fall in revenue for the third quarter ending 25 June, due to a continued decline in iPhone sales.
New updates targeted at professional customers is expected to help the company to keep the uptrend in sales intact.
On the other hand, updates to Macs are aimed at keeping their sales stable even as rival companies continue to see a decline in sales of personal computers.
Apple may include the new iPad software features while releasing an upgrade to the iOS 10 operating system in the first half of 2017 or add the improvements in the next major iOS version later in the year.
The iPad update will see improvements to the the Apple Pencil, a handwriting and drawing stylus designed to meet the needs of professional customers, a source told the publication.
The company will add faster display technology that enables smoother zooming, panning and scrolling as part of new updates to iPad hardware.
However, Apple has no plans to update its iPad lineup until next year.
It plans to release a new version of the iPad Pro next year, featuring a 10.5-inch display, up from the current 9.7-inch display, according to a recent research note by analyst Ming-Chi Kuo.
The updates to Mac line includes tweaked MacBook Air devices with multi-functional USB-C port technology and iMacs with an option for new graphics chips from Advanced Micro Devices.