The most senior victim yet of the series of damaging incidents that have corroded viewer trust, Mr Fincham said he had decided to quit after the report by former BBC executive Will Wyatt highlighted a catalogue of "misjudgments, poor practice and ineffective systems".

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Stephen Lambert, creative director of independent producer RDF, who was responsible for the fateful edit when compiling a showreel for potential overseas buyers, also announced his resignation yesterday. BBC1 head of press Jane Fletcher is also believed to have resigned.

Mr Fincham was last night temporarily replaced by BBC2 controller Roly Keating. Mr Keating is considered favourite to get the job full-time, with BBC4 controller Janice Hadlow replacing him at BBC2.

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Mr Wyatt also recommended a "formal compliance procedure" for season launches and said nominated executive producers should be "accorded a greater sense of ownership" and take responsibility for independent productions. He said the BBC ceded too much control to RDF, resulting in its relationship with the palace being damaged.

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BBC executives were castigated by the BBC Trust for "serious errors of judgment" and director general Mark Thompson is expected to come under pressure when they meet this month.

The BBC refused to comment on whether the documentary would be show and said it would discuss with RDF whether they would work together again. The palace welcomed the report but said the screening of the documentary was a matter for the BBC.

BBC1 controller Peter Fincham was yesterday forced to resign following the publication of a damning report into the broadcast of misleading footage of the Queen at a press launch, plunging the corporation into crisis once more.

According to the report, there remain serious areas of dispute between the BBC and RDF over who knew what and when.

The fallout from the resignations, first revealed by MediaGuardian.co.uk, had by last night led to a renewed bout of soul-searching at a BBC already riven by internal dispute over looming job losses. Some felt Mr Fincham had been made a scapegoat for his boss, director of BBC Vision Jana Bennett. Broadcasting unions were furious he had been allowed to resign while up to 25 more junior colleagues could be sacked for their role in viewer deception.

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Mr Thompson, already under pressure ahead of next month's decision on job cuts, repeated his apology to the Queen.

The BBC was forced to issue a grovelling apology to Buckingham Palace in July after Mr Fincham claimed the Queen stormed out of a photo shoot with Annie Leibovitz "in a huff". In fact, the full rushes show she was entering the room and that her remarks were made in good humour.

Ms Bennett is criticised for failing to read an email on the issue sent to her on the evening the crisis escalated and showing a "lack of curiosity" the next day.

The BBC, already establishing new structures to deal with fallout from viewer deceptions, including false competition winners on Children in Need and rigged polls on Blue Peter, said it would reiterate the importance of "immediate upward referral" of potentially serious incidents and learn the lessons of the report.