It is hoped the new leader will help rebuild the firm's shattered reputation

Austrian-born Peter Loscher will take up the post of chief executive of the German engineering group on 1 July, the company said.

Mr Loscher, 49, has run Merck's global human health arm since April last year.

He will take over as Siemens struggles with corruption allegations that have seen Siemens endure weeks of turmoil.

"In Peter Loscher, we have found an exceptional individual for the office of president and chief executive of Siemens," said Gerhard Cromme, chairman of Siemens' supervisory board.

He noted Mr Loscher's "upright character and outstanding international reputation" as key to the decision.

"I am convinced that Mr Loscher has what it takes to steer Siemens through its current difficulties and into a better future," Mr Cromme added.

Breaking tradition

Mr Loscher's career background in pharmaceutical companies, most notably General Electric and Aventis Pharma, makes him an unexpected choice to fill the post.

Correspondents say it marks a break with the Siemens tradition of picking someone from within the industry.

It shows the engineering giant's commitment to clearing its name, tarnished by German and US criminal investigations into suspected bribery involving a number of the company's past and present managers, analysts say.

Mr Kleinfeld is not personally implicated in the scandal

This week, two former Siemens managers were found guilty of bribing officials at Italian utility Enel for contracts in a German court and received suspended sentences.

Mr Loscher will succeed Mr Kleinfeld, who announced in April that he would not renew his contract when it expires in September.

Even though he is not a suspect, his position had been weakened by the ongoing scandal.

Mr Kleinfeld had worked for the trains-to-light bulbs group for 20 years and been chief executive since 2005.