eNCA's Zimbabwean correspondent Pindai Dube confirmed the tanks were visible in the streets of Harare, with sources indicating it was a "show of force" rather than a coup.
In a rare statement that highlighted the tensions rising in the impoverished southern African nation, General Constantino Chiwenga, commander of Zimbabwe Defence Forces said there was instability in ZANU-PF, which was causing anxiety in Zimbabwe.
Mugabe's 37 years in power has been anchored by support from the military, which has always said it will not back anyone for president who did not fight in the liberation war.
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President Robert Mugabe's famous "blue house" or "blue roof" has been sealed off by heavily armed military personnel, Khuluma Afrika has confirmed.
Grace Mugabe, 52, has developed a strong following in the powerful youth wing of the ruling Zanu PF party.
Several tanks have been seen heading towards the capital of Zimbabwe, less than a day after the head of the military said he could "step in" to end President Mugabe's "purge" of opponents.
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Chiwenga on Monday issued a hard hitting statement urging the ruling party to stop expulsion of party members with a liberation war background.
Chiwenga's statement is perceived as a direct challenge to Mugabe's decision to dismiss his long time right hand person Emmerson Mnangagwa. When Joice Mujuru, a war veteran and Mugabe's deputy of 10 years, was sacked from the ruling party in 2014, the military remained quiet.
Four people have been arrested for booing first lady Grace Mugabe at a rally. He has to declare his allegiance.
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She is now expected to be appointed vice-president at a special Zanu-PF congress next month.