Thiel, who cofounded PayPal in 1999 with Elon Musk, has invested in some of Silicon Valley's biggest companies.
Thiel, 50, was a co-founder of PayPal and an early investor in Facebook - where he still sits on the board - and he has helped finance several other tech startups.
The billionaire will move Thiel Capital and Thiel Foundation, which oversee his investments, to the City of Angels this year, according to the report.
The venture capitalist, who has served on the company's board of directors since 2005, was involved in a dispute with a fellow director due to his support for Donald Trump's presidential campaign, according to the Journal's sources, who also said a related confrontation over boardroom leaks with the social media firm's founder and CEO Mark Zuckerberg last summer contributed to the strain. In a 2016 email originally reported by The New York Times, Hastings described Thiel's support of Trump as "catastrophically bad judgment".
Thiel has left the boards of Zenefits and Asana, and sold most of his stake in Twilio.
He had already sold more than $1billion worth of Facebook stock before the filing made on November 21. He became a Facebook investor in 2004 with an initial investment of $500,000 at a $5 million valuation.
Last month, Thiel appeared at a debate about tech and politics at Stanford University.
The move comes amid his frustration with what he sees as intolerance of conservatism in tech industry, WSJ.com reports.
"Silicon Valley is a one-party state", he said. "That's when you get in trouble politically in our society, when". He donated $1.25 million to Mr Trump's campaign in 2015 before serving as an adviser on the new president's transition team.
Last month, a former Google engineer who was sacked after circulating a memo about biological differences between men and women sued the company saying he was discriminated against as a white man with conservative political views.