Christine Connelly, head of the NHS' beleaguered £11.4bn IT programme, has resigned in the middle of crucial contract negotiations, citing a major shake-up at the Department of Health resulting in fewer senior posts.

Ms Connelly, who served as chief information officer for almost three years, said she had chosen not to apply for one of the new director general positions. She will be replaced by Katie Davis, formerly director of operational excellence in the Cabinet Office's efficiency and reform group, who will take charge of talks with CSC, the project's biggest supplier.