BP chief executive officer Tony Hayward was expected to quit imminently with a pay-off of up to $18.5 million despite being lambasted over the Gulf of Mexico oil spill, British media reported yesterday.

The size of any such payoff, which must be agreed by a BP board meeting in London on Monday, risks sparking a fresh row as the British-based firm battles to rebuild its reputation after the worst environmental disaster in US history.

BP insists no final decision has yet been made on the future of Mr Hayward, whose string of public relations gaffes during the crisis included telling reporters “I want my life back” and joining a yacht race.

“BP confirms that no final decision has been made on these matters,” a spokesman for the energy giant said. “Any decisions will be announced as appropriate”.

BP shares finished up 4.6 per cent on the London Stock Exchange at 416.95 pence, in a market up 0.72 per cent overall. The firm has lost about 40 per cent of its stock market value since the spill.

“BP is higher after the oil giant confirmed it will hold a board meeting,” said CMC Markets analyst Michael Hewson.

“It is hoped that Hayward’s departure will draw a line under the PR shortcomings of the disaster response, and enable the company to start to rebuild its reputation in the United States with a new face at the helm.”

Mr Hayward has drawn criticism from US President Barack Obama – who said he would have fired him – and other senior figures in the United States over his handling of the aftermath of the April 20 disaster which killed 11 workers.

But he could still get a pay-off and pension package worth around £12 million pounds, The Times and the Financial Times newspapers reported.