Metropolitan Police Commissioner Sir Ian Blair is on the point of resigning, the BBC understands.
A "significant" statement is expected later on the future of Sir Ian, the UK's most senior officer since 2005.
It follows fresh newspaper reports on the use of public money to pay a close friend to advise him. Sir Ian has previously denied any wrongdoing.
He has also faced criticism over the racism row involving the Met's most senior Asian officer Tarique Ghaffur.
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There has been no official confirmation on the resignation from either the Metropolitan Police, the police authority or the Home Office.
Sir Ian has been commissioner since February 2005.
Last month, he was forced to deny newspaper reports that he is to be ousted from Scotland Yard when his contract expires in 2010.
Metropolitan Police Authority [MPA] auditors are in the process of examining Scotland Yard contracts given to consultancy firm Impact Plus, run by his friend.
Sir Ian has said he had been "open and straightforward in informing both the MPS [Metropolitan Police Service] and the MPA about my relationship with someone who was subsequently awarded a contract with the MPS".
(BBC)
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