Peter Hain, secretary for work and pensions has stepped down from the Cabinet.
His decision comes after a donation for his deputy leader campaign was referred to the Met Police for investigation.
Mr Hain - who has been a member of the Labour party for over 30 years - says he has decided to step down so he can clear his name after the Electoral Commission referred a donation of £103,000 to the police.
The MP blames the late declaration of the money on poor administration and denies that there has been any wrong doing.
He is expected to issue a statement about his resignation later on today.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article