Hsbc chairman Stephen Green is to join the Government as Trade Minister next January, the banking giant confirmed.

Mr Green, 61, will step down from HSBC before the end of the year to take up the post, ending a 28-year career with the bank.

The Government said the role - which will be unpaid - will focus on developing international relationships to boost British businesses abroad and drive UK exports.

The news brings to a close a difficult appointment for the Prime Minister, who has been unable to fill the post since the formation of the Government, having failed to persuade Lord (Mervyn) Davies to stay in the post he was given by Gordon Brown.

Reports suggest a number of business figures had turned down approaches to take on the role.

David Cameron said he was "delighted" to bring Mr Green on board.

He added: "With Stephen's experience and expertise, I know he will make an invaluable contribution towards this crucial agenda, helping to drive strong economic growth in the UK."

Mr Green will report to Business Secretary Vince Cable and Foreign Secretary William Hague.