Investment minister Baroness Poppy Gustafsson is set to leave the Government, it is understood.
A formal announcement is believed to be made later today.
Baroness Gustafsson's departure comes less than a year into her role after she was appointed in October last year.
Upon being appointed as investment minister, Baroness Gustafsson said: "It is a huge privilege to be appointed as the Minister of Investment and I am excited to get started.
"I have first-hand experience of building and scaling a business here in the UK and I am thrilled to have the opportunity to share with the international investment community what I already know to be true; the UK is a great place to do business."
Before entering Government, she helped form AI cybersecurity company, Darktrace, which was listed on the London Stock Exchange in 2021 and sold for more than £4 billion.
Earlier this year, the mother-of-two was awarded a CBE for services to cybersecurity in 2025.
According to Sky News citing a source close to the minister, her resignation comes as a result of her professional schedule clashing with family life.
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A formal announcement on Baroness Gustafsson's departure is expected to be made today
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The Department for Business and Trade has declined to comment.
Shadow business secretary, Andrew Griffith, said the news came as "zero surprise".
He wrote to X: "Poppy has a decent claim for constructive dismissal given Labour’s attacks on wealth creators, higher taxes and exodus of international investors since day one."
The minister's pending resignation will be the latest blow to Sir Keir Starmer following his deputy's resignation.
Angela Rayner has resigned as deputy prime minister following a stamp duty scandal
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Angela Rayner quit the Government after admitting she had not paid enough stamp duty on the purchase of her £800,000 seaside flat.
She said she had initially been advised that she was not liable for the second property surcharge because she had sold her stake in her family home in Ashton-under-Lyne to a court-instructed trust established in 2020 to benefit her disabled son.
But she conceded she had made a “mistake” after fresh legal advice from a “leading tax counsel” later revealed that she was liable for the extra duty on her flat in Hove.