1 November 2011 Last updated at 05:59
The row claimed another victim on Monday as the Dean, the Rt Rev Graeme Knowles resigned.
Mr Knowles, who had been Dean for four years, said: "The past fortnight has been a testing time for the chapter and for me personally.
Ian Chamberlain, 27, from Occupy London Stock Exchange, said: "They have to serve that notice and give us 48 hours so there is room for us to respond with legal action or whatever.
'Punishes the many'
from outside St Paul's Cathedral or face legal action.
The City of London
Keith Doyle says the rain has failed to move protesters off the site, as the authorities had hopedCorporation is to hand them a letter warning that High Court action will be taken unless the campsite is cleared within 48 hours.
Protesters say they are preparing to respond to any legal moves.
His departure - after he said his position was "untenable" - followed those of Canon Chancellor of St Paul's Giles Fraser and part-time chaplain Fraser Dyer.
Meanwhile, in his first comments on the situation, the Archbishop of Canterbury said the protesters had raised "urgent issues".
Dr Rowan Williams said: "The events of the last couple of weeks have shown very clearly how decisions made in good faith by good people under unusual pressure can have utterly unforeseen and unwelcome consequences, and the clergy of St Paul's deserve our understanding in these circumstances.
"Graeme Knowles has been a very distinguished Dean of St Paul's, who has done a great deal to strengthen the pastoral and intellectual life of the cathedral and its involvement in the life of London.
missed, and I wish him and Susan [his wife] well in whatever lies ahead.
"The urgent larger issues raised by the protesters at St Paul's remain very much on the table and we need - as a church and as society as a whole - to work to make sure that they are properly addressed."
"It has become increasingly clear to me that, as criticism of the cathedral has mounted in the press, media and in public opinion, my position as Dean of St Paul's was becoming untenable.
"In order to give the opportunity for a fresh approach to the complex and vital questions facing St Paul's, I have thought it best to stand down as Dean, to allow new leadership to be exercised.
"I do this with great sadness, but I now believe that I am no longer the right person to lead the chapter of this great cathedral."
St Paul's and the City of London Corporation announced on Friday they would try to obtain separate High Court injunctions to clear the 200-tent Occupy London camp.
"Our invitation for dialogue is still there. Liberty offered to facilitate a meeting to have dialogue with the Corporation of London and they haven't responded yet.
"We will stay here right until the end and explore legal options to respond to any eviction notice we do receive."
The Occupy London movement issued a statement saying it was about "social justice, real democracy and challenging the unsustainable financial system that punishes the many and privileges the few".
It added: "The management of St Paul's Cathedral is obviously deeply divided over the position they have taken in response to our cause - but our cause has never been directed at the staff of the cathedral."
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