Jim Gamble, who was one of the frontrunners to become chair of the grooming gang inquiry, has withdrawn, Sky News understands.
The former police officer began his career in Northern Ireland, rising to become head of RUC special branch in Belfast.
However, he is best known for his work combating child abuse, and in 2006, he headed up the Child Exploitation and Online Protection Centre, which revolutionised the approach to policing online child abuse networks.
He was one of two known leading candidates for the role.
The other, Annie Hudson, said earlier this week that she no longer wanted to be considered after intense media coverage.
The prime minister launched the inquiry into grooming gangs after an audit by Baroness Louise Casey showed the scale of the problem.
It is understood that the government is exploring a range of other candidates and will provide an update in due course.
A home office spokesperson said: “The grooming gang scandal was one of the darkest moments in this country’s history.
“That is why this government is committed to a full, statutory, national inquiry to uncover the truth. It is the very least that the victims of these hideous crimes deserve.
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“We are disappointed that candidates to chair that inquiry have withdrawn. This is an extremely sensitive topic, and we have to take the time to appoint the best person suitable for the role.
“The Home Secretary has been clear – there will be no hiding place for those who abused the most vulnerable in our society.”
It follows exchanges between Tory leader Kemi Badenoch and Sir Keir Starmer at Prime Minister’s Questions on Wednesday.
Ms Badenoch asked – on behalf of one of the resigned grooming inquiry members – what the point of an inquiry is if they are just ignored.
Mr Starmer said the inquiry “is not and will never be watered down” and that he wanted survivors “to be at the heart of this.
“I want an inquiry that can get to the truth, these are the hard yards, I accept that. But I want to press on and get this right.”
Asked about Labour’s change in position this year from saying a national inquiry is not necessary to the current situation, the prime minister said: “I want to go as fast as we can to get the justice that is deserved.
“I want to ensure survivors are involved in that, and we’re balancing the two to get this right, and I’ll continue to do so.”
Victim’s father calls for minister to resign
Marlon West, whose daughter Scarlett was a grooming victim who was raped by more than 60 men, has called for safeguarding minister Jess Phillips to resign.
He said he doubted she would, but claimed she “has lost any kind of faith from the public, and more importantly with survivors and families”.
Read more on Sky News:
Inquiry ‘won’t be watered down’
Grooming survivor quits inquiry
Victim ‘lives with trauma every day
Mr West described the minister in parliament this week as “unprofessional” and “defensive rather than listening to what survivors are saying”.
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He also wants to see an inquiry with family members included, alongside survivors, on the panel, and even though he doesn’t want to be included, he said “it’s the families who are dealing with the services, not so much the survivors.
“It’s the parents who are dealing with the police, every single day, and social services. It’s really important that they get family perspective. “I think they should start again.”
Mr Gamble is a former police chief, while Ms Hudson used to be a social worker.
Ellie-Ann Reynolds, who withdrew earlier this week, said as soon as they found out what the two candidates used to do, it “raised red flags”.
She said victims were “gaslit” and “manipulated” during the process and they had “very little faith in authorities and systems”.
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