Oakland Mayor Ron Dellums gave City Administrator Deborah Edgerly the notice Friday amid accusations that Edgerly, 56, intervened with an investigation being conducted by police, the Oakland Tribune reported.
Three days before Edgerly was given notice, Dellums said she would be able to keep her position through July.
"I did not want to have to exercise this option knowing that given the present environment people would interpret this as a judgment of guilt," Dellums wrote. "I have assiduously stood in a posture of non-judgment, but delay in this matter will only further inflame this situation."
Sources familiar with the situation have said Edgerly could be charged for potentially warning her nephew, William Lovan, 27, an alleged gang member, about the police probe, the newspaper said.