Graeme Knowles's resignation follows that of Canon Chancellor of St Paul's Giles Fraser, who defended the protesters.

The Dean said that he believed he was "no longer the right person" to lead the chapter.

"The past fortnight has been a testing time for the chapter and for me personally," Mr Knowles said.

"It has become increasingly clear to me that, as criticism of the cathedral has mounted in the press, media and in public opinion, my position as Dean of St Paul's was becoming untenable.

"In order to give the opportunity for a fresh approach to the complex and vital questions facing St Paul's, I have thought it best to stand down as Dean, to allow new leadership to be exercised."

The Occupy LSX movement said that its protest was about "social justice, real democracy and challenging the unsustainable financial system that punishes the many and privileges the few.

"The management of St Paul's Cathedral is obviously deeply divided over the position they have taken in response to our cause, but our cause has never been directed at the staff of the cathedral.

"Nor have we ever called for 'scalps' as reported in the media."