“He has a clear ambition to see the BBC succeed in a rapidly changing media landscape, and I have no doubt he will provide the support and scrutiny that the BBC needs to meet the challenges of the future.”

Shah’s appointment will almost certainly be ratified by a parliament committee and comes at a crucial time for the BBC, which is facing increased funding pressures.

The corporation is currently looking to make £500 million in savings and recently announced cutbacks to its flagship Newsnight programme.

Shah, 71, will be tasked with negotiating with the government an increase to the licence fee, which is where the BBC gets most of its funding.

UK media reported recently that Prime Minister Rishi Sunak plans to block a nine per cent increase in the annual fee, which is currently £159 (US$200) per household.

Shah, who was born in India, has worked in television for more than 40 years and has held a number of roles at the BBC, including as head of current affairs.

“The BBC has a great place in British life and a unique duty to reach a wide audience right across the country and I will do all I can to ensure it fulfils this in an increasingly competitive market,” he said.

Sharp, a former executive at investment bank Goldman Sachs, quit after it emerged he acted as a go-between to facilitate an £800,000 (US$1 million) loan for Johnson.

“We welcome the announcement that Samir Shah has been selected as the government’s preferred candidate to take up the role of BBC Chair and look forward to him joining the Board once the formal process has been completed,” a BBC spokesperson said.

BBC board member Elan Closs Stephens became the acting chair of the broadcaster following Sharp’s resignation.

Additional reporting by Reuters