British media reported that junior Brexit minister Steve Baker had also stepped down.
Britain's Brexit minister David Davis and one of his deputies resigned on Sunday (July 8) in a major blow for Prime Minister Theresa May as she tries to unite her party behind a plan to retain strong economic ties to the European Union even after leaving the bloc.
Two senior sources confirmed Mr Davis' departure from the Cabinet.
Peter Bone welcomed Mr Davis' resignation, saying it was "a principled and fearless decision".
Conservative MP and Remainer Anna Soubry did not refer directly to Mr Davis' resignation, but tweeted it was "not the time for egos, grandstanding and blind ideology".
Labour Party chairman Ian Lavery told BBC News "this is absolute chaos and Theresa May has no authority left".
In a resignation letter circulated by local reporters, Davis told May he has repeatedly disagreed with the government over the past year and that it is looking "less and less likely" that the government can deliver Brexit per voters' wishes.
"The general direction of policy will leave us in at best a weak negotiating position and possible an inescapable one", he wrote, adding: "The inevitable outcome of the proposed policies will be to make the supposed control by Parliament illusory rather than real".
Several Tory Brexiteers said yesterday they were waiting to hear what the Prime Minister had to say during tonight's meeting before deciding whether or not to submit a letter of no confidence in their leader. On Friday she achieved a rare consensus in a key cabinet meeting at her Chequers country house estate on the way forward for the negotiations with the EU.
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May's office said a replacement for Davis would be announced Monday.
May was expected to tell MPs that the strategy agreed on at Chequers is the "right Brexit" for Britain.
On Monday, May is due to brief MPs on the plan hammered out during a 12-hour meeting at Chequers, the prime minister's country retreat.
An analysis of the Chequers deal circulating within the pro-Brexit European Research Group of MPs was damning about the plan, saying it would lead to "a worst-of-all-worlds "black hole" Brexit where the United Kingdom is stuck permanently as a vassal state in the EU's legal and regulatory tar pit".
Tory Andrew Bridgen said he could not support the proposals that came out of Chequers, describing them as a breach of the red lines and that he wouldn't support it "even if the European Union were paying us for it".
The EU is not in a generous mood and views Mrs May's plan as "cherry-picking" from the single market to suit the British economy and the whims of Eurosceptic cabinet ministers. Her...
"And I think without David Davis there, without his imprimatur, it will be very hard for them to get the support of Conservative MPs and therefore the prime minister would be well advised to reconsider them".
Speculation is mounting that others, including Foreign Secretary Boris Johnson, are ready to quit.
Trade Secretary Liam Fox put his name to a newspaper article backing the plan, and Environment Secretary Michael Gove defended the agreement in a TV interview. Michael Gove, May's environment minister, said on Sunday that while the agreed negotiating stance was not ideal, he believed it delivered on handing back control to Britain.