The first woman to head KPMG, one of Britain’s big four accountants, is in advanced negotiations to leave the firm after being unexpectedly passed over for the top job.

Sky News has learnt that Mary O’Connor, who ran KPMG for two months after the sudden departure of Bill Michael earlier this year, is close to agreeing the details of her exit.

Insiders said on Thursday that a statement about Ms O’Connor’s future could be made in the coming days.

They said it remained possible that Jon Holt, KPMG UK’s new chief executive, could persuade her to stay in another role but conceded that the prospects of him doing so appeared to be remote.

Ms O’Connor joined the firm as its chief risk officer in 2018, before being promoted to the role of head of clients and markets – essentially running its entire consulting business – in October last year.

She was expected to be a strong contender for the chief executive’s job when Mr Michael left in February after causing a furore over comments he made during a staff conference call.

Instead, KPMG announced last month that Mr Holt had been nominated for the top job, bypassing the need for a leadership election.

One KPMG partner said that if Ms O’Connor did leave the firm, the “optics were far from ideal” at a time when it was attempting to address a gender imbalance in its top ranks.

The UK chair’s job will continue to be held by Bina Mehta, the first woman to hold that post.

A KPMG spokeswoman declined to comment.

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