The Vatican has said the head of its bank, who is being investigated in a money laundering case, has been ousted after receiving a unanimous vote of no-confidence from bank overseers.

Ettore Gotti Tedeschi has been a polarising figure in the Vatican ever since he was named president of the Institute for Religious Works, known as the IOR, in 2009.

He is currently being investigated on suspicion of money laundering.

In a statement today, the Holy See said the vote was taken because of Mr Tedeschi's failure to fulfil the "primary functions of his office".

It said it hoped to find a new president who will "rebuild relationships with the institute and the financial community based on mutual respect based on internationally accepted banking standards".

Mr Tedeschi has told prosecutors he barely paid attention to the bank's works, turning up only two days a week while tending to his primary position as head of Spain's Banco Santander's Italian unit.

In addition, someone familiar with the case said Mr Tedeschi had been found to have leaked confidential documents to serve his personal and political interests.

The Vatican is in the midst of a scandal over leaked documents and has begun a criminal investigation into the source of the leaks, as well as appointed a commission of cardinals to get to the bottom of it.

Mr Tedeschi has long painted himself as the symbol of Vatican financial transparency, but today's vote indicated that his primary collaborators on the board had found him to be anything but. He was accused of neglecting to keep the board of superintendents apprised of the work of the bank, among other failings.

Mr Tedeschi's fate is not final, however.

Tomorrow, the cardinals who sit on the IOR's governing council are to meet to consider the no-confidence vote. It is not clear if they can ignore the ruling, but the Vatican has already indicated the search is on for a new president.