The Royal Bank of Scotland (RBS) is in advanced talks with the regulator at the Bank of England to appoint Ross McEwan as the new chief executive.
Mr McEwan was selected as the prefered candidate to replace Stephen Hester during a board meeting on Wednesday (31 July), the Financial Times reports.
However, the Prudential Regulation Authority (PRA) at the Bank of England has yet to give the appointment its approval and current finance director Bruce van Saun will remain a back-up candidate should any issues arise.
Mr McEwan was recruited by RBS to run the company's retail banking business in August 2012 and has been seen as the leading candidate for the chief executive officer position ever since Mr Hester relinquished his role.
He previously ran retail banking at Commonwealth Bank of Australia and the government sees as good experience considering the long-term strategy for RBS, which is partially owned by the state after a bail-out.
By Asim Shah