Richard Sharp has recently been acting as an adviser to Chancellor Rishi Sunak.
He will take over from former Bank of England deputy governor David Clementi, who is stepping down next month after four years.
Names previously linked with the chairman’s position include former Tory Chancellor George Osborne, and ex-editor of the Daily Telegraph Charles Moore, who reportedly ruled himself out.
Mr Sharp will work closely with recently appointed director-general Tim Davie.
The BBC chairman is officially appointed by the Queen on the recommendation of the government.
The person in the role is responsible for upholding and protecting the independence of the Corporation, which is funded by a licence fee paid by every TV-watching household.
Mr Sharp joins at a critical time for the BBC, which faces some of the biggest threats to uts furure since it was founded nearly a century ago.
Boris Johnson has been critical of the licence fee at a time when the BBC is losing viewers, with streaming services such as Netflix growing in popularity all the time.
The BBC has also regularly been accused of bias by critics throughout UK politics.
Many Conservatives perceive it to be London-centric and left-leaning, but those on the left of the opposition Labour Party view it as biased against them.
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