Carmarthenshire CC chief executive Mark James has offered to step down.
Mr James, who was found by the Wales Audit Office to have received two sets of unlawful payments, has applied for voluntary severance from the authority.
A statement issued by the council said Mr James would stay in post for three to four month while his application for voluntary severance was considered by the council.
“During this period, it will be business as usual for Mr James who will continue in his role as chief executive over the next three to four months,” it said. “We will provide updated information as and when appropriate.”
Mr James’ decision to apply for voluntary severance follows a two-month absence earlier this year while police investigated the WAO’s finding that arrangements to compensate senior Carmarthenshire staff who had left the local government pension scheme were unlawful.
He returned to work in May after police decided to take no action over the payments.