Royal Mail boss Simon Thompson is to step down from his role, the owner of the postal giant has said.

Mr Thompson said he believed it was the “right time” to go after Royal Mail and the main postal union struck a deal that could end a long-running dispute.

He has had a difficult two years in charge of the firm.

Mr Thompson had come under pressure after he was accused of misleading MPs when he denied Royal Mail tracked workers’ productivity.

He will remain in post until the end of October, and the board is in “advanced stages” of appointing a new chief executive, it said.

There were reports that Mr Thompson had become “increasingly disillusioned” during strike action by members of the Communication Workers Union (CWU).

It is believed leaders of Royal Mail’s parent company, International Distributions Services, also wanted fresh leadership at the firm after the dispute over pay and conditions.

Last month, union bosses recommended that workers accept the new deal which would end the bitter dispute. Union members will be balloted later this month.

The company had said that more industrial action, which had already cost it £200m, could lead to Royal Mail going bust.