Mr Cummings is said to be furious that Lee Cain, the Number 10 communications director, was ousted after an internal power struggle.
According to a Downing Street source, speaking to the Daily Mail, Mr Cummings will quit at start of next year when the Brexit transition process is complete.
At this point the UK will no longer be required to pay into the EU budget or follow European rules in many areas.
During 2016 Mr Cummings was the mastermind behind the successful ‘Vote Leave’ Brexit campaign.
Speaking to the Mail about the departure of Mr Cain a source said: “This will loosen Dom’s grip on government and hasten his departure.
“He wants to get Brexit over the line, get over the hump of the pandemic and get one or two of his pet projects locked in.
“Once that is done, he won’t hang around.”
However Downing Street dismissed the report as “speculation”.
The Daily Mail also reports Boris Johnson had to talk Mr Cummings out of resigning immediately on Wednesday night.
The power struggle within Number 10 erupted after Mr Johnson attempted to promote Mr Cain to be his new chief of staff.
However this was reportedly opposed by other influential Downing Street figures, including his fiancé Carrie Symonds.
As a result Mr Cain, a former Daily Mirror journalist who worked for the Vote Leave campaign in 2016, resigned on Wednesday.
A number of other allies of Mr Cummings, including chief Brexit negotiator Lord David Frost, are also reported to be on “resignation watch”.
Should Lord Frost resign, just as EU trade negotiations are entering their final phase, it would be a bitter blow for the Government.
More to follow…