It has been reported that she is set to become Labour leader Sir Keir Starmer’s new chief of staff.
Labour has not officially commented but has not denied that Ms Gray was being considered. Ms Gray has not commented.
It is not clear when she would be able to take on such a role under the terms of her civil service contract.
The appointment would need to be checked by the Advisory Committee on Business Appointments (Acoba), which vets new jobs for former ministers and senior civil servants for up to two years after they leave office.
Acoba provides advice to the prime minister, so Rishi Sunak could yet block the move.
A Cabinet Office spokesperson said: “We can confirm that Sue Gray has resigned from the post of Second Permanent Secretary in the Department for Levelling Up, Housing and Communities (DLUHC). This was accepted by the department Permanent Secretary and Cabinet Secretary with immediate effect. We will not be commenting further on individual personnel matters. We are reviewing the circumstances under which she resigned.”
Ms Gray’s report on the Partygate scandal last year contributed to Boris Johnson’s downfall, prompting numerous Conservative MPs to call on the then-prime minister to resign.
She led the civil service investigation into allegations of coronavirus rule-breaking at No 10 in December 2021, going from an influential but little-known arbiter of conduct in government to a household name seen as holding Mr Johnson’s fate in her hands.
Hearings in an inquiry by the Commons Privileges Committee into opposition claims Mr Johnson misled MPs about what he knew about the lockdown gatherings in government buildings are expected to begin in the coming weeks.
It may be no surprise to some but it certainly is to me …
She was chosen by Johnson and No.10 to do the enquiry after it turned out the first choice was partying himself, not by Labour or Johnson’s critics
And there’s never been anything to suggest she’s been anything but professional, efficient and impartial and has integrity, just the sort of person Labour needs, and they’d be lucky to get her
But it was bound to set off hypocritical squealing and shouts of “no fair” from the Johnson cronies
Which is a bit rich, seeing as their style has always been about chumocracy, cronyism and selling themselves to the highest bidder and giving their chums the good jobs and contracts as a reward for helping them out
And if they hadn’t been partying in the first place, she wouldn’t have been able to find against them, would she?
No good doing the crime, then grizzling when the investigator you chose yourself calls you out on it
But I’m still not sure it’s a good idea for Labour because it’s given a chance for the partying Tories to open their gobs again and try to justify the unspeakable way they behaved instead of having the common decency to remain shamefaced about it
Conservative MP Alexander Stafford, a former ministerial aide to Mr Johnson, said the appointment “doesn’t pass the sniff test”.
“It really undermines the work that she’s done, undermines the civil service and really puts in question Sir Keir’s complete judgement,” he added.
Former minister Jacob Rees-Mogg, a cabinet minister under Mr Johnson, has said Ms Gray’s Partygate conclusions now looked “like a left-wing stitch up”.
I think she would always be open to all sorts of accusations at every opportunity. She would be better off becoming a political editor for a good news paper.
There needs to be an enquiry now into Sue Grey to determine how much information that she was privy to was handed over to the Labour Party during this period. There is no way she can be regarded as impartial, which was a prerequisite of being appointed to run the investigation into the prime minister.
That is not my contention, I am talking about, honesty, integrity, credibility and truthfulness, things I have not seen in ANY politician or public servant in a very long time. I suppose we must thank the media for bringing their failings into the light even if they are the same.
Former senior civil servant Sue Gray could take up a job as Sir Keir Starmer’s chief of staff in the autumn.
Ms Gray quit the civil service in March, prompting fury in government and claims rules had been broken.
The government wanted to stop Ms Gray working for Labour for a year - with a further six months of restrictions.
However, reports suggest the advisory appointments committee is recommending she could start the job six months after leaving the civil service.
The independent Advisory Committee on Business Appointments (Acoba) has been looking into the appointment and will provide a final judgement on Ms Gray’s departure.