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Miss Smith has signalled she will step down when Mr Brown reshuffles his Cabinet after this week’s local and European elections.
Her departure emerged as three more Labour MPs – including serving minister Beverley Hughes – signalled they will leave the House of Commons at the next election.
Miss Smith will remain in parliament and intends to contest her marginal seat at the next election.
A source close to the Home Secretary, who had been “hurt” by revelations about her expenses claims, said she had spoken to Mr Brown about her plans two months ago.
Miss Smith faced humiliation after her husband submitted a receipt to the Commons for watching adult films.
And she faced criticism for claiming her family home as a second home under the MPs' allowances scheme while lodging with her sister in London.
She is also said to have bought him a £240 Apple iPhone on her office expenses. He is employed by her as an assistant.
She also billed taxpayers for her accountancy costs and £1,600 for three digital cameras and a camcorder over three years.
The departure of Miss Smith has the hallmarks of the controversy over the resignation last autumn of Transport Secretary Ruth Kelly, whose decision to leave the Cabinet was eventually confirmed by now disgraced Downing Street aide Damian McBride in a notorious 3am party conference briefing.
A Home Office spokesman refused to comment on the resignation speculation around Miss Smith.
But losing the Home Secretary and several other MPs will add to the sense of panic now threatening Mr Brown’s Government.
The Prime Minister is already expected to remove Alistair Darling, the Chancellor, from the Treasury. He could be given Miss Smith’s job if he is not sacked outright.
Other contenders for the Home Office include Alan Johnson, the Health Secretary, and Shaun Woodward, the Northern Ireland Secretary.
Many of Miss Smith’s colleagues believe she is facing the end of her political career at the next general election, as her Midlands seat is highly vulnerable to the Conservatives.
Leaving the Cabinet would allow her to spend more time campaigning there, in an effort to remain in parliament.
She was made Home Secretary by Mr Brown in a surprise promotion in 2007. After a confident start in the post, she has been dogged by a number of scandals relating to her expenses claims.
Most damagingly, she faced the humiliating disclosure that her husband claimed for pay-per-view pornographic films on her Commons expenses.
It has also been revealed that she claimed for items including a barbeque and a bathplug.
Miss Smith was due to appear in the Commons this afternoon, opening a debate on the Borders, Citizenship and Immigration Bill.
Two senior Labour figures said earlier today that they were going to stand down as MPs at the general election.
Beverley Hughes, the children's minister, said that she was stepping down for "personal reasons" and claimed her departure had nothing to do with the ongoing MPs' expenses scandal.
Her announcement followed a similiar statement from Patricia Hewitt, the former Cabinet minister. She also denied her stepping down was linked to the expenses scandal.
She said she wanted to spend more time with her family, as well as spending more time on work and charitable activities related to India.
Meanwhile, Labour MP David Chaytor has announced that he is going to stand down, following The Daily Telegraph’s disclosure last month that he claimed almost £13,000 in interest from his MP's expenses for a mortgage that he had already paid off.
He said that he had made an “unforgiveable error” over his phantom mortgage and apologised to his constituents. He is the 14th MP to have announced they are standing down as a result of the Telegraph's expenses investigation.
Mr Chaytor, announcing this morning that he would not seek re-election, said that his priority in the next few months would be to "explain his errors" over his expenses.
By James Kirkup, Political Correspondent
Jacqui Smith to 'resign' as Home Secretary - Telegraph
Her departure emerged as three more Labour MPs – including serving minister Beverley Hughes – signalled they will leave the House of Commons at the next election.
Miss Smith will remain in parliament and intends to contest her marginal seat at the next election.
A source close to the Home Secretary, who had been “hurt” by revelations about her expenses claims, said she had spoken to Mr Brown about her plans two months ago.
Miss Smith faced humiliation after her husband submitted a receipt to the Commons for watching adult films.
And she faced criticism for claiming her family home as a second home under the MPs' allowances scheme while lodging with her sister in London.
She is also said to have bought him a £240 Apple iPhone on her office expenses. He is employed by her as an assistant.
She also billed taxpayers for her accountancy costs and £1,600 for three digital cameras and a camcorder over three years.
The departure of Miss Smith has the hallmarks of the controversy over the resignation last autumn of Transport Secretary Ruth Kelly, whose decision to leave the Cabinet was eventually confirmed by now disgraced Downing Street aide Damian McBride in a notorious 3am party conference briefing.
A Home Office spokesman refused to comment on the resignation speculation around Miss Smith.
But losing the Home Secretary and several other MPs will add to the sense of panic now threatening Mr Brown’s Government.
The Prime Minister is already expected to remove Alistair Darling, the Chancellor, from the Treasury. He could be given Miss Smith’s job if he is not sacked outright.
Other contenders for the Home Office include Alan Johnson, the Health Secretary, and Shaun Woodward, the Northern Ireland Secretary.
Many of Miss Smith’s colleagues believe she is facing the end of her political career at the next general election, as her Midlands seat is highly vulnerable to the Conservatives.
Leaving the Cabinet would allow her to spend more time campaigning there, in an effort to remain in parliament.
She was made Home Secretary by Mr Brown in a surprise promotion in 2007. After a confident start in the post, she has been dogged by a number of scandals relating to her expenses claims.
Most damagingly, she faced the humiliating disclosure that her husband claimed for pay-per-view pornographic films on her Commons expenses.
It has also been revealed that she claimed for items including a barbeque and a bathplug.
Miss Smith was due to appear in the Commons this afternoon, opening a debate on the Borders, Citizenship and Immigration Bill.
Two senior Labour figures said earlier today that they were going to stand down as MPs at the general election.
Beverley Hughes, the children's minister, said that she was stepping down for "personal reasons" and claimed her departure had nothing to do with the ongoing MPs' expenses scandal.
Her announcement followed a similiar statement from Patricia Hewitt, the former Cabinet minister. She also denied her stepping down was linked to the expenses scandal.
She said she wanted to spend more time with her family, as well as spending more time on work and charitable activities related to India.
Meanwhile, Labour MP David Chaytor has announced that he is going to stand down, following The Daily Telegraph’s disclosure last month that he claimed almost £13,000 in interest from his MP's expenses for a mortgage that he had already paid off.
He said that he had made an “unforgiveable error” over his phantom mortgage and apologised to his constituents. He is the 14th MP to have announced they are standing down as a result of the Telegraph's expenses investigation.
Mr Chaytor, announcing this morning that he would not seek re-election, said that his priority in the next few months would be to "explain his errors" over his expenses.
By James Kirkup, Political Correspondent
Jacqui Smith to 'resign' as Home Secretary - Telegraph
