AAP understands Barrett has resigned and will finish up at the end of the season.

There is expected to be a formal announcement on Wednesday.

It is the latest movement in the code's coaching merry-go-round, with former Penrith assistant Barrett now in the box seat to replace the sacked Anthony Griffin at the Panthers.

Barrett worked there as an assistant coach for three years before getting the top job at Manly.

His whole time at the club has been a rollercoaster ride ever since he was appointed to replace club legend Geoff Toovey in controversial circumstances in time for the 2016 season.

Barrett threatened to walk out only last week after a season in which the club has lurched from one crisis to the next.

It was the second time this year reports arose about Barrett expressing dissatisfaction with his level of support from club officials.

In May, he vowed to stick with Manly after he was filmed meeting with his management and lawyers about the situation.

Earlier on Tuesday, some of the club's senior players publicly said they expected Barrett to stay until the end of his contract.

"He's here for the next couple of years. Baz is a great coach, the players love him and we'd love to have him around," said veteran Trent Hodkinson.

"I'm sure it will all work itself out."

Forward Frank Winterstein said the players had "full faith" that Barrett would stay.

Barrett has had to deal with a lot since he took the reins at the northern beaches club, with his team never far from the headlines.

First there was now-disproved match-fixing allegations from before his time, then the club was fined for breaching the salary cap.

Soon after that, captain Daly Cherry-Evans was fined for getting into a fight with teammate Jackson Hastings at a strip club in the Queensland city of Gladstone following a loss to the Gold Coast.

After that night, Hastings spent most of the season playing NSW Cup, leading to allegations of him being frozen out after Barrett repeatedly didn't pick him when first-choice five-eighth Lachlan Croker suffered a season-ending injury.

Hastings has since left the club to head to Super League side Salford.

Australian Associated Press