Martin Herd was suspended from Shrewsbury and Telford Hospital NHS Trust in May pending an investigation into finances by external auditors.

On Wednesday, the trust, which is �19m in debt, said Mr Herd's resignation lets him "develop his career elsewhere".

Last week, chairman Phil Homer stepped down over the trust's plans to cut

paediatric services.

Standard practice

If plans to reduce night-time paediatric cover at The Princess Royal Hospital (PRH) in Telford are approved, emergency cases would be sent to the Royal Shrewsbury Hospital (RSH).

Proposals are being put to the board by the trust's chief executive at the end of July.

A trust spokesman said the issue of paediatric services would be discussed in a public session, and that any proposals were always in the interest of providing robust services to the public.

The trust, which is about �19m in debt, said in May that Mr Herd's suspension was standard practice during an external audit.

It was formed in 2003 with the merger of the RSH and PRH.