Pro-independence politicians in the Catalan parliament are planning a debate and a vote on the matter as their first order of business for next week.
The declaration of independence is expected to follow shortly after.
More than two million Catalans voted to eave Spain last Sunday in a poll marred by a violent police reaction.
And Catalan leader Carles Puigdemont says he already feels like the “president of a free country” after the region’s controversial independence referendum.
In an interview with German newspaper Bild, due to be published on Thursday, Mr Puigdemont says: “I already feel as a president of a free country where millions of people have made an important decision.”
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More than 90 per cent of the votes cast in the referendum were in favour of independence from Spain.
However opponents of the move claim the vote is not representative as the decision is to be made on just 43 per cent turnout. Most voters not in favour of independence stayed home to boycott the ballot.
The vote has also been branded illegal as Catalonia’s political leaders did not follow due political process to call the referendum, according to the Spanish government.
Spain has been pushed to the brink by the independence referendum after it was condemned by senior politicians in Madrid and by King Felipe.
The reigning Spanish monarch said the referendum had shown a “lack of loyalty” to the government, criticising the referendum as undemocratic.
The Spanish government’s handling of the referendum has also been heavily condemned after police violence at polling stations.
Dr Ramon Pardo, a senior lecturer in international relations at King’s College London has told Express.co.uk it is now a question of how, and not if, Catalonia will declare independence.
He said: “I think the most important question is how is he going to word the declaration, because that is probably going to be more crucial than the declaration itself.
“If he says ‘as of tomorrow Catalonia will be an independent state’, this will be seen as very confrontational to the Spanish Government.
“If he says ‘we are going to start a constitutional process that will lead to independence’, that is a more conciliatory tone because he is leaving the door open to negotiations.”
Either way, the declaration will not be valid under Spanish law, Dr Pardo explained.