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Lee Anderson has resigned as deputy Conservative chairman to rebel over the government's flagship Rwanda bill.
Another deputy party chairman, Brendan Clarke-Smith, also resigned ahead of voting against the government.
They were among 60 Tory MPs who backed an amendment which rebels said was aimed at toughening up the bill.
Despite the significant rebellion, Downing Street remain confident the bill as a whole will pass in a vote which is expected on Wednesday.
If around 30 Tory MPs joined opposition parties in voting against the legislation it could be defeated.
At least four Tories - including former ministers Robert Jenrick and Suella Braverman - have publicly said they are prepared to vote against the bill if it is not improved, with reports that more could join them.
Even a government victory would come at a political cost, with debates over the issue exposing the extent of divisions within the Conservative Party.
The legislation seeks to revive the government's plan to send some asylum seekers to Rwanda and deter people from crossing the Channel in small boats.
Jane Stevenson, a parliamentary private secretary in the Department for Business and Trade, also confirmed she had offered her resignation after voting for the rebel amendments.
In a joint resignation letter, Mr Anderson and Mr Clarke-Smith said they had previously argued that "safeguards" were needed to ensure the legislation was "watertight".
"It is therefore important in terms of credibility that we are consistent with this," they added.
The Tory MPs said they had supported rebel amendments to the Rwanda bill "not because we are against the legislation, but because like everyone else we want it to work".
Mr Anderson told GB News that while most of the bill was "sound", it needed "beefing up".
"I can't be in a position to vote for something which I don't believe in," he added.
Asked if he would vote against the bill as a whole on Wednesday, he said: "We'll see what happens over the next 24 hours. There's a lot of discussions going to happen behind closed doors."
Mr Anderson and Mr Clarke-Smith both represent so-called "red wall" seats previously held by Labour and have been outspoken on the need to tackle illegal immigration.
With strong support from the right of the party, there had been speculation Prime Minister Rishi Sunak would choose not to sack them as they held party not government positions.
But in their letter, they acknowledged their "important roles" meant they were bound by collective responsibility - so are expected to vote with the government or resign.
Labour said the resignations showed Mr Sunak was "too weak to lead his party and too weak to lead the country".
"These resignations show that even senior Tories think that the Conservatives have failed and is yet more evidence of the total Tory chaos over their failing Rwanda gimmick - yet they are still making the taxpayer pay the extortionate price," the party's national campaign coordinator, Pat McFadden said.
Amendments tabled by Robert Jenrick - who resigned as immigration minister last year over the Rwanda legislation - and veteran Conservative Sir Bill Cash were among those voted on by MPs.
Sir Bill's proposal, which aimed to prevent any international law being used to block someone being removed to Rwanda, was defeated 529 votes to 68.
Senior Tories including former Home Secretary Mrs Braverman and former Prime Minister Liz Truss were among those voting in favour.
Mr Jenrick's amendment was also defeated, by 525 votes to 58.
Under his proposal, people could still appeal their removal to Rwanda, but only after they had been deported.