Livingston was FD at the group from 2002 to 2005, but for the past three years he has been chief executive of BT Retail. He will replace Ben Verwaayen later this year after getting the nod from the BT board.

Livingston qualified with Arthur Andersen and joined BT as group FD from Dixons. He has been credited with transforming the fortunes of the BT Retail division, which has returned to ‘growth and sharply increased profitability’ under his stewardship, BT said.

Livingston said: ‘BT is a great company with a strong history and an even more exciting future. I am very proud to have been chosen as its next CEO.’

BT chairman and former KPMG boss Sir Mike Rake said : ‘Ian was the board’s unanimous choice to succeed Ben in June. His record of achievement at BT and before that at Dixons is outstanding.

‘He has a deep understanding of BT having served as group FD and CEO of BT Retail. He will continue to deliver on a proven strategy. We share a vision of the future for BT as the leading communications services company in the UK and globally.’