Updated at 6.44pm: Executive Council member Antony Leung Kam-chung will replace Donald Tsang Yam-kuen as Financial Secretary after Mr Tsang becomes Chief Secretary, a local Chinese newspaper reported on Tuesday. According to the Sing Tao Daily, a ''reliable source'' said Chief Executive Tung Chee-hwa wants Mr Tsang as Chief Secretary. The position was made vacant last month after the resignation announcement of Anson Chan Fang On-sang. The newspaper said Mr Tung approached Mr Leung on Sunday about becoming Financial Secretary. Mr Leung, chairman for JP Morgan & Chase, Asia Pacific, was believed to have accepted the invitation, the newspaper said. If he accepts he will have to give up his current job which has an annual salary exceeding $10 million. The Financial Secretary's annual salary is about $2.4 million. Leung, 49, became well-known during the handover when he was Education Commission chairman dealing with education reforms. It was rumoured Mr Tung had offered the position to Rafael Hui Si-yan, Mandatory Provident Fund Authority managing director and a former senior civil servant. The report said Mr Hui rejected the invitation. Cheung Chor-yung, a social studies lecturer at the City University of Hong Kong, said Mr Leung's non civil-servant background would not be a problem. ''He is a person Mr Tung trusts. It is not surprising that Mr Tung approached him [Mr Leung]... because he had helped with the education reforms, and has a banking background,'' Dr Cheung said. He said if Mr Leung accepted the position this would raise interesting questions about his employment contract because Mr Tung has pledged greater accountability of Government officials. ''Will Mr Leung be employed on a civil servant contract,'' he asked. Another social studies lecturer at the university, Ivan Choy Chi-keung, said civil-servant morale would be undermined if Mr Leung accepted the positon. ''Mr Tsang may still have a hand in the budget because Mr Leung may not be able to co-operate well with other civil servants. Mr Leung is relatively inexperienced,'' he added. Mr Leung has refused to comment on whether he would replace Mr Tsang.