Mr Baird was born in Aberdeen

Euan Baird, who suffered a stroke in December, has also resigned his role as director at the company due to a long period of convalescence.

Mr Baird replaced Sir Ralph Robins as chairman of the aerospace, defence and marine power firm in February last year.

Rolls-Royce has sites in Bristol, Coventry, Derby and Glasgow.

Lord Moore of Lower Marsh, who has been acting chairman in Mr Baird's absence, will serve as interim chairman.

Lord Moore said: "Euan Baird has made a significant and lasting contribution to Rolls-Royce in his period as chairman and the board is very sorry that he has had to stand down."

The group recruited Scottish-born Mr Baird as a non-executive director in November 2002 before appointing him as chairman on 1 February 2003.