Sir Ken Morrison will lose his hands-on role

Marc Bolland, chief operating officer of Heineken, is taking the job, ending Sir Ken Morrison's 50-year reign.

Sir Ken will remain as chairman but Mr Bolland is thought to have insisted on complete executive control of the firm.

Joining in September, he will lead a three-year programme aimed at getting the supermarket back on its feet.

Sticking point

Mr Bolland's appointment comes just weeks after Morrisons signalled Sir Ken would retire as chairman in January 2008 when he is due to become life president.

He has been under pressure to recruit a new chief executive after the company's performance deteriorated in the wake of its 2004 takeover of Safeway.

Analysts believe that the role of Sir Ken, 74, has proved a major sticking point in the appointment of a new Morrisons boss.

The issue had "turned many potential Morrisons chief executive candidates away" said Clive Black of Shore Capital Stockbrokers.

He added: "The new chief executive needs the autonomy to address the challenges and opportunities Morrisons faces to improve returns without the additional filter of the chairman."

Last month Morrisons announced losses of �312.9m, mainly caused by the merger.

But it said its share of the grocery market had stabilised after its recent problems and that it was now anticipating future growth.