One of Boris Johnson’s ministers and most prominent leadership backers has informed the government he is intending to resign, Sky News understands.
Johnny Mercer will see the prime minister within hours to tender his resignation as Minister for Defence, People and Veterans.
This comes after weeks of unhappiness over slow progress of legislation designed to protect veterans.
Mr Mercer is understood not to have formally tended his resignation yet, and wants to explain his reasons directly to the PM.
Mr Johnson has previously succeeded in talking key figures in his administration out of resigning, including Lord Frost, his former Brexit negotiator who ended up with a promotion after threatening to walk.
However sources close to Mr Mercer have not denied he intends to resign.
Last week the House of Lords blocked government efforts to protect Armed Forces veterans and serving personnel from “vexatious” prosecution for historic alleged war crimes – the legislation championed by Mr Mercer.
Peers heavily defeated the Government in demanding that war crimes, crimes against humanity, genocide and torture are all excluded from future legal safeguards for British troops fighting overseas.