Downing Street sources confirm he gets the promotion.
UPDATE: The FT report “A new “head of the civil service” will take over the admin responsibilities for the whole of Whitehall. Sir David Normington is to launch an internal competition to recruit this person. The Cabinet Office will have a new, dedicated permanent secretary. It is Ian Watmore, currently head of the Cabinet Office’s ‘efficiency and reform’ group.” GOD’s resignation letter is here.