Sir Keir Starmer is poised to withdraw the offer of a new job to his former chief of staff Sue Gray, according to media reports.
Ms Gray was due to take up a role as “envoy to the nations and regions” after she resigned from her position at the heart of Government in October.
This followed intense media speculation about a power struggle at the heart of Downing Street.
The former chief of staff was said to be on a short break before taking up her new post but reports across the media suggest the Prime Minister is now likely to rescind the job offer over concerns about what exactly the role would entail.
On Tuesday, the Guardian newspaper reported that Downing Street is preparing to withdraw the offer, and also said there were concerns about the media attention which would likely follow her if she were to accept the role.
The Financial Times meanwhile said Ms Gray has now rejected the job.
“Sue has taken a decision not to take the role. She’s going to focus on other things,” an ally of the ex-civil servant told the FT.
They added: “She’s taken time to think about it properly, talking to stakeholders, but ultimately she’s decided she doesn’t want to do it.”
Previous reporting suggested Ms Gray was negotiating over the terms of the job and her exit from Downing Street.
Downing Street had previously described the envoy to the nations and regions as a “vital role in strengthening our relations with the regions and nations”.
In the job, she would have acted as a go-between for ministers with devolved governments in Wales, Scotland and Northern Ireland, and regional mayors across England.
