It is thought Lord Turner could be appoin­ted in the next two weeks, bringing an end to a protracted search for a successor to Sir Callum McCarthy, who is due to step down from the £434,000-a-year Treasury appointed position in September.

Pressure to find a suitable candidate has intensified after the FSA admitted failings over the collapse of mortgage bank Northern Rock.

Headhunters have told candidates the chairman’s job is a full-time position expec­ted to take up to five days a week but it is thought a compromise is being worked out to allow Turner, 52, to remain chairman of the Government’s committee on climate change.

They were told to look for someone with consumer finance experience to complement the investment banking expertise of the FSA’s chief executive, Hector Sants.

Turner, who spent much of his career at management consultancy McKinsey, has previously headed the Government’s Low Pay Commission.

It is unclear whether he will come under pressure to relinquish directorships, including non-executive roles at United Business Media and Standard Chartered.

*** READ MORE CITY & BUSINESS NOW! ***