Congress Punjab unit president Partap Singh Bajwa's resignation came days after party vice president Rahul Gandhi visited Punjab amid factionalism in the state unit.
Decks have been cleared for a reshuffle in Punjab Congress today with the resignation of state unit president Partap Singh Bajwa and legislature party leader Sunil Jakhar.
"Congress president Sonia Gandhi has accepted the resignations. The name of the new chief will be announced soon," state unit in-charge Shakeel Ahmed told the media.
Captain Amarinder Singh, the party's lawmaker from Amritsar and its deputy leader from Lok Sabha, is expected to the new chief, sources said.
The new CLP leader is likely to be a Dalit leader. The names doing the rounds include Chamkaur Sahib legislator Charanjit Singh Channi and Sadhu Singh Dharamsot, legislator from Nabha.
The reshuffle is geared towards the assembly polls in the state, which will be held in 2017. Over the last few months, Congress Vice President Rahul Gandhi held a series of meetings to discuss how best to prepare for the elections.
In the last Assembly polls, the party had projected Amarinder Singh as its Chief Ministerial candidate. The Congress, however, failed to succeed and later, the "overconfidence" of Mr Singh was considered one of the key reasons for the debacle.
But with the Amarinder and the Bajwa camps at loggerheads, preserving party unity is crucial for the Congress.
The leaders had put up a united face during Mr Gandhi's recent visits. Both camps were seen sharing a stage after a long time, setting the ball rolling for the reshuffle.
Last week, Mr Gandhi led a delegation of party leaders from Punjab, including the Captain and Mr Bajwa, to President Pranab Mukherjee to project unity in the state unit.