The ATLAS Tile Calorimeter (TileCal) will undergo a major replacement of its on- and off-detector electronics for the Long Shutdown 3 that is planned for 2024 and 2025. All signals will be digitised and transferred directly to the off-detector electronics, where the signals are reconstructed, stored, and sent to the first level of trigger at a rate of 40MHz. This will provide better precision of the calorimeter signals used by the trigger system and will allow the development of more complex trigger algorithms. Changes to the electronics will also contribute to the reliability and redundancy of the system. Three different front-end options are presently being investigated for the upgrade and will be chosen after extensive test beam studies. A Hybrid Demonstrator module has been developed. The demonstrator is undergoing extensive testing and is planned for insertion in ATLAS.