Portillo plans to quit parliament

BAE Systems is the UK's biggest defence contractor and makes the Eurofighter jet in partnership with French aerospace firm EADS.

Mr Portillo said a press report that he had put his name forward to succeed BAE's retiring chairman was "entirely wrong."

Mr Portillo said he sits on the BAE committee conducting the search.

Job hunt

The Sunday Telegraph reported that Mr Portillo had told BAE's chairman Sir Richard Evans and chief executive Mike Turner of his interest in heading the firm's board at some point during the last fortnight.

"Having made up his mind to quit politics, he mentioned to Dick and Mike Turner that he would be interested in the job," the newspaper quoted an executive as saying.

Mr Portillo announced last month that he plans to stand down as a Conservative MP at the next election.

He said then that he was keen to explore opportunities in the media, public bodies and the arts.

Mr Portillo, who was Secretary of State for Defence in John Major's cabinet, joined BAE's board as a non-executive director just over a year ago.

BAE has reportedly appointed City head-hunters Spencer Stuart to find a successor to Sir Richard.

Defence industry analysts believe that finding a US merger partner should be among BAE's priorities if it wants to substantially increase sales in the lucrative US market.

Mr Portillo has long been one of the Conservative Party's most charismatic and controversial figures. He was often mentioned as a potential leader but failed to get to the final round in the contest won by Iain Duncan Smith.

He shifted from hard-line right winger to become the leader of the party's liberal wing, and has carved out a career as a television presenter.