Thomas H Campbell, director of New York’s Museum of Metropolitan Art, has resigned following reports that trustees and colleagues had become “disillusioned” with his leadership after eight years in the role.

Campbell’s resignation comes at a time when the prestigious institution is dealing with a potential US$40m (€38m, £32.5m) deficit if it fails to get its finances under control, according to Met president and COO Daniel Weiss. The museum ended the previous financial year with an US$8.3m (€7.9m, £6.8m) budget deficit.

According to The New York Times, tensions within the institution are at an all-time high, with increasing concerns among staff and trustees about the Met’s financial health, as well as Campbell’s capacity to lead the US’s largest museum.

The Met recently delayed US$600m (€563.4m, £492.4m) plans to redevelop its southwest wing by as long as seven years as bosses aim to get the institution’s finances in order.

“I have decided to step down from my role as Director and CEO of The Metropolitan Museum of Art in order to pursue the next phase of my career,” said Campbell in a statement.

"At a moment when art and culture have an especially profound role to play in fostering mutual understanding, I am especially proud that our visitor base is the largest and most diverse in the museum's history.

"At the same time, we are on track to be financially stable and have a solid strategic path forward."

Campbell will stay on at the museum until June, the end of the fiscal year, with Weiss serving as interim chief executive. Weiss will work with Campbell and the museum’s leadership on a transition plan while the Met seeks a new director.