Penny Abraham will leave the council's cabinet in May. She fell out with colleagues after not being consulted over the departure of director Jane Held on Christmas Eve.
Abraham said at the time she felt "revulsion" at the decision, which had left staff "reeling and bewildered".
Held has not yet commented on her departure, but insiders say it may be connected with a recent fall in the Audit Commission's rating for Camden's adult social services from three to two out of four.
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