(Updates with report of BP denial) DOW JONES NEWSWIRES Tony Hayward, chief executive officer of BP PLC (BP, BP.LN), might step down from his post in late August or September, U.K. newspaper The Times reported Tuesday on its website. Citing unnamed "sources close to BP," the report said Hayward's exit was expected before Oct. 1, assuming the Gulf of Mexico oil spill has been permanently sealed. The Times quoted "one insider" as saying of Hayward: "Why keep utterly damaged goods on the shelf? They have to do some dramatic things to protect the company, and his credibility is now close to zero." Separately, MSNB quoted BP spokesman Scott Dean as calling the report "not true." Hayward "remains BP's chief executive of the company" and is "very much in charge," the spokesman was quoted as saying. Full story: http://www.thetimes.co.uk/tto/business/industries/naturalresources/article2652600.ece -Dow Jones Newswires; 212-416-2800 (END) Dow Jones Newswires July 20, 2010 20:42 ET (00:42 GMT)