According to a report in The Daily Mirror, Vaughan has already informed his friends and family of his decision, and a further announcement is expected after the completion of the Durham Test. Although in principle, Vaughan is against the splitting of the England captaincy, he recognises he will not be around for the 2011 World Cup in the subcontinent.
Also off-field antics such as the 'Fredalo' affair have all taken their toll on him.
Vaughan also admitted his knee injury would always be a concern, but will now have more time to focus on managing it. However his hunger for Test success burns as brightly as ever, with the 2009 Ashes the ultimate aim.
Though the right-hander is against splitting England's captaincy, yet he is prepared to compromise with the situation in order to bring success for his country in both Tests and one-dayers.
All-rounder Paul Collingwood is seen as the favourite to take over Vaughan's post.