Social development minister Bathabile Dlamini on Sunday refused to answer any questions about how government grants will be paid out from April.
Dangor confirmed today that he has resigned citing a breakdown of relations with minister Bathabile Dlamini over the handling of the Sassa crisis.
The agreement came after negotiations began between the two parties on Wednesday.
The party wants to become a second applicant in a matter lodged earlier this week by human rights group Black Sash.
The social security agency says the court no longer has any supervisory jurisdiction over it.
In papers submitted to the court this week, the Black Sash asked the court to allow Sassa to continue its relationship with Cash Paymaster Service.
Read the directions from the Constitutional Court in the Sassa/Black Sash matter.
Its job is to serve the poorest. Instead, the social development agency spins a web of doublespeak.
In terms of its original ruling, CPS, once contracted, acts as an organ of the state and has to provide a service.
Sassa filed papers to the Concourt on Tuesday requesting the court to authorise its negotiations with CPS to pay grants for the next year.