The Hitch actor, 53, was furious after the comedian, 57, made a joke about his wife Jada Pinkett Smith's shaved head. She has alopecia.
After slapping Chris, he even screamed out, 'Keep my wife's name out your f***ing mouth' from his seat.
The Academy recently revealed that they have launched a formal review around the incident after they condemned his actions.
A source has also claimed that Will has until April 18, when a decision on whether Will gets to keep his Oscar, will be made.
"Things are hanging in the balance. He will write an official letter to apologise, and effectively beg for their forgiveness," the insider told The Sun.
"He is also expected to hold a call with show bosses in the next 24 hours. April 18 is D-Day, though — he will find out if he still has an Oscar, and quite possibly, a career."
Mirror have contacted Will's representatives for comment.
Following the incident on Sunday evening, the Academy released a statement on the shocking moment.
The statement read: "The Academy condemns the actions of Mr. Smith at last night's show.
"We have officially started a formal review around the incident and will explore further action and consequences in accordance with our Bylaws, Standards of Conduct and California law."
The statement released by AMPAS follows a late-night tweet after the altercation, in which they posted: "The Academy does not condone violence of any form."
Speaking on the review, Academy Governor Whoopi Goldberg claimed his first-ever Oscar won't be stripped from him.
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Whoopi said on Monday's The View: "I think it was a lot of stuff probably built up.
"I think he overreacted… I think he had one of those moments where it was like [God damn] it, just stop.
"I get it, not everybody acts the way we would like them to act under pressure. And he snapped..."
She added: "Sometimes you get to a point when you behave badly. I myself have behaved badly on occasion."
The View co-host Sunny Hostin said she was 'surprised he wasn't escorted out', and asked whether he would be stripped of the award.
Whoopi answered: "We're not going to take that Oscar from him.
"There will be consequences I'm sure, but I don't think that's what they're going to do, particularly because Chris said 'Listen, I'm not pressing any charges.'"
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