The source also told FMT that Ali’s contract would not be renewed, despite talk of several quarters hoping he would receive an extension.
It said Prime Minister Dr Mahathir Mohamad might be looking at several recommended candidates to take over the post.
When contacted, Ali refused to confirm his retirement, saying “No comment.”
Ali, 63, was appointed as chief secretary to the government in 2012. He was among the top civil servants retained by the new government which took power after the general election in May.
A chief secretary is the head of the civil service whose position comes after the prime minister, deputy prime minister and Cabinet members. The Yang di-Pertuan Agong consents to the appointment of an individual based on the advice of the prime minister.
The G25 group of former prominent civil servants recently urged Ali to step down on the back of criticism from several quarters, including Mahathir who said he had inherited a government where its top officers were corrupt.
The group said Mahathir’s remarks as well as criticism from others on the behaviour of top officials had tarnished the image of the civil service.