Giancarlo di Risio planned to submit his resignation Friday at the board meeting, The New York Times reported, citing a source close to the company.
Di Risio has been with Versace for five years after a year as head of Fendi, another Italian fashion house. His accomplishments include straightening out Versace's finances.
The company was founded in 1978 by designer Gianni Versace. His sister, Donatella, became creative director after he was killed in 1997 in Miami and owns the company with her surviving brother and daughter.
Italian newspapers have recently reported a strained relationship between di Risio and Donatella Versace. The company released a statement in May denying "the existence of friction."
Versace has hired a consultant to draw up a three-year plan for the company, given the economic downturn and slump in demand for expensive fashion.