The Bank of Canada has chosen economist Stephen Poloz to head the organisation after the departure of Mark Carney.
Mr Poloz has previously worked as chief executive of Canada's export credit agency and has been in the country's public service sector for 25 years.
The move comes as a surprise to many who expected Mr Carney's senior deputy Tiff Macklem to succeed him.
Mr Carney will leave his role as governor on 1 June 2013 and Mr Poloz will take up the post, which will run for seven years, two days later.
Chair of the bank's search committee David Laidley said: "Mr Poloz has significant knowledge of financial markets and monetary policy issues and extensive management experience."
Policy makers have kept the benchmark interest rate at one per cent since 2010, which is the longest pause since the 1950s and say growth must be led by exports and company spending from housing and consumers.
By Claire Archer