According to Sky News, which was the first news outlet to break the story, the current CEO is tipped to join NBNK, a new start-up venture being launched by Lord Levene, chairman of Lloydâs of London.
Mr Hoffman is widely credited with helping Northern Rock remain afloat following the run on the bank in 2007, which resulted in the government acquiring the financial institution.
He is also believed to be the architect of the bankâs restructuring where it was separated into two divisions - a âgoodâ bank, featuring its ongoing operations, and a âbadâ bank, which included its more toxic assets.
Ron Sandler, current chairman at Northern Rock, is expected to expand his role to include managing the bank if Mr Hoffmanâs departure goes ahead as anticipated.
Northern Rock and the UK Financial Investments, which manages the governmentâs stakes in banks it helped lend capital to during the credit crunch, have not yet commented on the matter.
The main strategy for NBNK is to raise enough capital to acquire 600 retail branches which the Lloyds Banking Group is planning on selling.
By Jim Ottewill