League City police Chief Michael Jez has a year left on his contract, which pays $125,000 annually.
Interim City Manager Rich Oller on Thursday advised city employees that the police chief has been put on leave, following a council vote Tuesday night.
The Galveston County Daily News reported Friday that city officials are working on a separation agreement with the chief. Jez has cited a "widening philosophical gap" with city council members over running the department.
A police union official had alleged that Jez has ticket quotas. Prosecutors who reviewed the matter declined to take any action.
Assistant police Chief Gary Ratliff will be acting chief.