Scottish Labour leader Wendy Alexander is expected to announce she will stand down, the BBC understands.
Ms Alexander has come under pressure after breaking donation rules and faces a one-day ban from parliament.
The Scottish Parliament's standards committee ruled that she failed to declare donations to her leadership campaign on her register of interests.
Ms Alexander, who became leader last September, is preparing to make a statement at the party's Scottish HQ.
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Political future
BBC Scotland political correspondent Glenn Campbell said he thought Ms Alexander had "had enough".
He said: "There was the decision the other day by the standards committee of the Scottish Parliament to take action against her for failing to register the donations that her campaign for the leadership received.
"And then the decision to suspend her from parliament for one day, which has pushed her to a point where she has had to seriously consider her political future.
"I think she has now decided to stand down from that post after less than a year in charge."
The standards committee ruling was the latest development in the saga of donations to Ms Alexander's leadership campaign.
She expressed "deep regret" that her team accepted an illegal Ј950 donation from Jersey-based businessman Paul Green, although the Electoral Commission found there was not sufficient evidence to prove an offence and did not report her to prosecutors.
Meanwhile, the Labour MP for East Glasgow, David Marshall, is to resign his Westminster seat for health reasons.
A party spokesman said: "David Marshall has indicated to local members in Glasgow that he will step down as a Member of Parliament.
"We understand that he has written to party members to say that his health has deteriorated and so our thoughts and prayers are with him at this time and we wish him a speedy recovery."
(BBC)
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