The chairman of HS2 faces the bag less than five months after the appointment due to fear that the costs are out of control.
Sir Terry Morgan is also set to be removed as chairman of Crossrail, the ambitious line connecting East and West London, relieving him of the leadership of two of Britain's highest-profile infrastructure projects, according to a report.
The move will be a painful setback for transport secretary Chris Grayling.
Theresa May was expected to move towards Morgan, described as "world class" by Grayling when appointing him in July to HS2, the planned high-speed railroad between London and Birmingham. One source said that Morgan was expected to leave both posts within a few weeks.
The news was first reported by the Financial Times on Friday. It is assumed that both Grayling and Chancellor Philip Hammond had stated that they did not trust Morning leadership and urged May to remove him.
FT quoted a government officially near HS2 who said, "They told the prime minister they have no confidence in him and she agrees. It's just a matter of finding the right moment to announce it."
Downing Street , Department of Transport and HS2 refused to comment. DfT said: "We did not want to comment on staff matters."
The paper also reported insiders in London City Hall that Morgan would descend from Crossrail after striking out with Mayor Sadiq Khan as the costs rose and the hopes of income in the short term fell after the opening hours were pushed back.
"The more people who looked at Crossrail, the more they realized that Terry Morgan was not the person who took a big project like HS2 over the line," said FT. "There are a lot of companies waiting for HS2 to start awarding contracts for the construction phase, but we're still waiting for final decisions. People kick their heels."
Grayling had allied himself to Morgan in the summer. "Sir Terry's appointment as head of HS2 ensures that we will continue to see world-class leadership in an exciting period for one of Europe's most significant infrastructure projects, which helps to provide significant economic growth and improvements for passengers across the country," he said. He announced the decision.
Morgan, the transport secretary added, had a "wealth of experience and expertise" as well as a "respected reputation and enthusiasm". He cited Morgan's work on previous infrastructure projects, including upgrading of several London Underground lines and work at BAE Systems. Morgan said the deal was a "privilege" and promised that HS2 would "help transform this country."
But concerns were raised about the direction after days after Monday's agreement on HS2 that Crossrail drove around 600 million dollars over budget. And in August, the prime minister's infrastructure advisor said they would spend an additional £ 43 billion on projects related to HS2 to make it worthwhile.
In an article for Sunday Telegraph, chairman of the National Infrastructure Commission, Sir John Armitt, the government said "can not just build a new high-speed railway line and leave it there to get the biggest bang for our money, we must think about the whole The journey that passengers will take. "
He continued:" When people reach the end of their HS2 journey and travel into the city, visiting them in the current form, they will in many cases face insufficient public transport and overload on the roads. " To handle it, he suggested transferring money to local areas to improve their infrastructure.
There were several reports that HS2's budget could eventually spiral to £ 80bn. The Sunday Times said a leaked report warned that the official £ 56 billion budget for the project had to be significantly increased.