Sue Gray has quit her role as Prime Minister Sir Keir Starmer’s chief of staff.
A Downing Street spokeswoman confirmed Ms Gray will take up a new role as the PM’s envoy for nations and regions.
She had been caught up in rows over pay after the BBC’s political editor revealed her salary was higher than Sir Keir’s.
Labour has confirmed Ms Gray will be replaced by Morgan McSweeney, who was previously chief adviser to the PM.