BP CEO Tony Hayward will step down this week, a U.S. government official said Sunday.

The senior U.S. official was briefed on the decision by a senior BP official late last week. Speaking on condition of anonymity, the official did not indicate when the move might come, nor who might replace the outgoing CEO.

It is expected Hayward will be succeeded by BP Managing Director Bob Dudley, who is currently heading up the company's oil spill cleanup in the Gulf of Mexico.

If he is chosen, Dudley would be the company's first American CEO.

But amidst a swirl of reports about the rumoured transition, BP spokesperson Toby Odone downplayed the prospect, insisting that Hayward "remains BP's chief executive, and he has the confidence of the board and senior management."

Hayward, 53, has come under heavy scrutiny from both U.S. politicians and the public since the April 20 oil spill. Hayward hit what may have been his lowest point in late May when he told reporters, "Nobody wants this over more than I do."

"I want my life back."

Taken in the context of Gulf residents struggling to cope with the devastating oil spill, his comments sparked vehement outrage.

Hayward only added fuel to the fire when tried to minimize the environmental impact of the spill, telling members of Congress he was out of the loop on day-to-day decision making at the Deepwater Horizon rig. Hayward was finally pulled from his duties overseeing the cleanup after public reaction to his attending a yacht race was less than kind.

Still, public relations expert Allan Bonner told CTV News Channel Sunday that Hayward will have many opportunities after BP.

"He's a young enough man," said Bonner, who added that Hayward could write a book or hit the speaking circuit if he doesn't immediately continue in the corporate world.

However, when compared to the Exxon Valdez disaster in the late 1980s, BP has taken a very public beating over the Gulf spill.

"Don't forget, nobody resigned at Exxon," said Bonner, who has studied that spill extensively since it occurred two decades ago.

Plus, Bonner said that the government should also take some blame in the disaster because of lax regulations in the oil industry.

"The legislators, the regulators, everywhere from the local up to the national level ... have a lot of explaining to do," he said.

Nonetheless, Bonner said it's likely that at least a few executives at BP will be forced from their jobs in the coming months as the company attempts to rebuild.

He also suggested that the company would re-brand itself.

"I wouldn't be surprised to see a name change."

As for Hayward, while a settlement has not been reached, he is expected to receive a payout of about $1.5 million and a pension package worth about $15 million.

Hayward, who joined BP as a geologist in 1982, currently earns more than $1.6 million as the company's head. According to BP's annual report, in 2009 his total pay including bonuses and other remuneration totaled more than $6.1 million.

BP has not officially made any announcement, but following board approval there is speculation it could come as soon as Monday.

With files from CTV Washington Bureau Chief Paul Workman and The Associated Press