Daily News Editor-in-Chief Colin Myler is out, sources said.

The 63-year old Brit, who took over the ailing tabloid in January 2012, is expected to exit the job shortly and be replaced by Executive Editor Jim Rich.

The move comes a month after owner Mort Zuckerman was forced to call off the auction for the paper after receiving no substantial offers.

Observers see the move as the start of a new round of belt-tightening to get the books in shape for another attempt to sell the money-losing paper down the road, sources said.

The paper was said to be losing close to $30 million a year — and under Myler its print circulation had plunged more than 30 percent in the past year.

Myler was hauling in $1.5 million a year, sources said.