LONDON, March 11 (Reuters) - Britain's Co-operative Group's

42TE.L chief executive Euan Sutherland has offered to resign in a letter in which he describes the member-owned group as "ungovernable", the BBC reported on Tuesday.

The BBC said Sutherland, who joined in May last year, had written a resignation letter and that the board was trying to persuade him to stay.

The Co-op, a well-known high street presence with banks, supermarkets and funeral homes, has been rocked in the past year by the discovery of a 1.5 billion pound ($2.5 billion) capital hole in its banking arm and a drugs scandal involving ex-chairman, Methodist minister Paul Flowers.

The Co-op was not immediately available to comment on the report.

(Reporting by Brenda Goh; editing by Guy Faulconbridge and Paul Sandle)

((brenda.goh@thomsonreuters.com)(+44 020 7542 2230)(Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))

Keywords: BRITAIN CO OPERATIVE GRP/CEO