A source familiar with the NY litigation, where a review is underway of documents seized from Cohen in April, indicated the reports that Cohen is splitting with his lawyers appeared to be correct.
News of McDermott's looming departure from the case comes ahead of a federal judge's Friday deadline to conduct a privilege review over documents seized in the April raid of Cohen's home and offices in NY.
His choice may help steer whether he decides to cooperate with prosecutors investigating his personal business dealings, or with Special Counsel Robert Mueller's team, which is investigating Russian influence in the Trump campaign.
Michael Cohen, U.S. President Donald Trump's longtime fixer and attorney, arrives to a court hearing in Manhattan in April. Cohen wants to hire a lawyer who has a relationship with the USA prosecutor's office in Manhattan, the source added.
Trump has worked with Cohen for years. Leon Neal Getty Images
But as the investigation widens, and with Cohen's legal team in turmoil, the chances increase that Cohen could cooperate with prosecutors.
And Cohen's name appeared repeatedly in the now infamous dossier of unverified allegations, which included salacious claims about Trump, prepared by former British intelligence agent Christopher Steele.
Cohen's business is now under investigation in Manhattan, which includes the controversial $130,000 hush money payment made to porn star Stormy Daniels just before the 2016 presidential election.
President Trump, through his representatives, has denied the allegations of McDougal and Daniels.
Then there is McDougal, who in August 2016 signed a $150,000 deal with American Media Inc., the publisher of the National Enquirer, that transferred to the company the rights to her story of an alleged ten-month romantic affair with Trump.
While Trump had long denied knowledge of the payment, former NY mayor Rudy Giuliani confirmed the reimbursement in a bombshell interview last month on Fox News.
Lawyers for Mr. Cohen didn't respond to requests for comment.
I'm ready to lead Eagles to victory in Russian Federation , says Mikel
The Super Eagles and Croatia and have been tipped to battle for the runners-up spot in group D and Rohr was full of praise for Zlatko Dalic's side .
Business as usual in North Korea as public unaware of summit
Shortly after arriving, Kim visited the presidential palace, the Istana, to meet with Singapore's Prime Minister Lee Hsien-loong. If it follows the usual routine, state media will probably wait until the event is over before it puts out its first reports.
US net neutrality rules expire
But net neutrality remains alive and well in Washington , thanks to a bi-partisan bill that was signed into law earlier this year. Brendan Carr, a Republican member of the FCC, said on Twitter: "Americans are passionate about the free and open internet".