By Ian MacWilliam BBC correspondent in Kabul

In a quiet ceremony, the outgoing governor, Gul Agha Sherzai, handed power to his successor, Mohammad Yusuf Pushtun.

Mr Karzai has been trying to rein in powerful governors and warlords

There had been some concern since the change of governor was announced that he might try to hold onto power.

Previous attempts by President Karzai to appoint new governors went awry when those dismissed refused to step down.

The Deputy United Nations Special Representative for Afghanistan, Jean Arnault, said this peaceful transfer was a sign that the central government was gaining greater respect and influence outside the capital and it was becoming a truly national government.

Conservative resurgence

Mr Sherzai was to go to Kabul to become Minister of Urban Development, but he said he wasn't qualified for the post. Instead he says he will stay in Kandahar and stand as a candidate in next year's planned elections.

Kandahar, the original home of the Taleban, has seen a resurgence of the ultra-conservative movement in recent month.

The appointment of a new governor is being seen as an attempt to get to grips with this growing opposition movement.