The Wall Street Journal reported last week that Blankfein was considering retiring at the end of this year, and named both Schwartz, 54, and Solomon, 56, as the only two candidates being considered to replace him.
Schwartz will leave the bank on April 20, and Solomon will serve as the sole president and chief operating officer, the New York-based company said in a statement Monday.
The question of who will next lead the iconic Wall Street firm Goldman Sachs appears to be getting close to an answer. Goldman is valued at about $100 billion and employs 6,000 people in London.
Adds that naming Solomon as sole COO and president indicates transition is nearing.
"Harvey has been a mentor to many, and his influence has made an indelible impact on generations of professionals at Goldman Sachs", Blankfein said.More news: Seattle Times pays tribute to former Stanford cornerback Richard Sherman
Blankfein has led the firm for almost a dozen years since his predecessor, Henry M Paulson Jr, departed to be the Treasury secretary under President George W Bush.
KBW sees Solomon as "a capable leader", with significant experience running the investment bank, and a longstanding member of Goldman's management committee.
Blankfein, 63, one of the longest-serving CEOs on Wall Street, has led what is viewed as the most powerful US investment bank for almost 12 years. It claims that this may happen as soon as the end of the year, but Blankfein hasn't confirmed or denied the report. In a November tweet he said: "So much at stake, why not make sure consensus still there?"
A decade removed from a global financial crisis, Goldman remains a potent symbol of Wall Street's enduring power, and its chief executive perhaps the banking industry's most prominent spokesman.
Prior to Goldman, Solomon spent almost nine years at Bear Stearns.
Outside of the office, he serves on the board of The Robin Hood Foundation, an organization dedicated to fighting poverty. He famously moonlights as a DJ, has partied with the likes of Diddy, and once gave life-changing career advice to the Philadelphia 76ers guard J.J. Redick. Solomon is also a member of the board of trustees at Hamilton College, from which he graduated in 1984 with a degree in government.