The restructuring report cites an "acute erosion of public confidence in TxDOT." Specifics on proposed leadership changes were not included.
Another recommendation includes hiring a chief information officer to oversee technology for TxDOT, with about 12,000 employees and a two-year budget topping $16 billion.
The recommendations come as the Texas Legislature prepares to convene on Tuesday.
TxDOT is overseen by the five-member Texas Transportation Commission. Commissioners are appointed by the governor.
Chairwoman Deirdre Delisi says the panel is "going to do things that make sense" for TxDOT.