John O'Shea has reportedly resigned as head Australian trainer for international thoroughbred racing power Godolphin.

O'Shea is believed to be in the process of negotiating a severance package, three years into a five-year contract.

He took over the high-pressure role from Peter Snowden in May, 2014 and has trained 10 Group One winners under Sheikh Mohammed's Darley and Godolphin banner.

Godolphin operates Australian stables at Warwick Farm, Flemington and at Osborne Park, a private training complex on Sydney's north-western outskirts.

O'Shea has trained more than 500 winners for Sheikh Mohammed, highlighted by successive a Group One Golden Rose victories with Exosphere and Astern.

Although he hasn't made a public statement confirming his resignation, O'Shea has told Racing NSW stewards Godolphin's string of racehorses will still compete under his name until a date for his departure is finalised.

Godolphin has made no comment on O'Shea's decision to quit.

O'Shea's resignation continues a controversial period for Godolphin's Australian operation with its stable jockey James McDonald serving an 18-month disqualification for being involved in a betting scandal.