Sources have told The Standard Bishop Hough has completed paperwork to finalise the decision and will make a formal announcement before the Anglican faithful in Portland this morning.

Pressure for his resignation has intensified in recent months, with a group known as Ballarat Laity Against Bullying (BLAB) gathering more than 300 signatures on a petition prompted by allegations of bullying towards clergy members.

Other concerns involve the number of laity leaving the church, an exodus of priests from the diocese and the number of parishes without priests.

Parishioners in Port Fairy have spoken out in support of Bishop Hough, describing him as innovative and opposed by traditionalists.

"When he took office he said he would be a missionary-style leader and not just sit behind a desk," church member Netta Hill said earlier this month.

Bishop Hough has not returned to his role since going on sick leave just over a fortnight ago.

A Melbourne assistant bishop, Philip Huggins, was appointed to take temporary charge of Ballarat and received the blessing of Melbourne Archbishop Philip Freier.

It is extremely unusual for a senior priest from within the diocese not to take charge in a bishop's absence, though The Age reported divisions in Ballarat were so deep that no internal candidate was deemed acceptable to Bishop Hough's supporters and critics.

The bishop is the subject of 13 complaints made by clergy and lay people, though a long-running Episcopal Standards Commission investigation into his alleged misconduct is yet to be completed.

BLAB had planned to present its petition today, but is instead set to welcome Bishop Hough's decision.

Applicants for his position are expected to be interviewed by a committee consisting of six lay people and six clergy members.

The weekend synod will be held in the Portland Civic Hall and concludes tomorrow morning with Eucharist at St Stephen's Anglican Church.