Rolls-Royce chief Sir John Rose will quit his post next March, the company has announced.
John Rishton, non-executive director at Rolls-Royce and currently chief executive of Dutch retail group Royal Ahold, will replace Rose.
Rose said: "It has been my great good fortune to work for Rolls Royce for the past twenty six years, and to have been its chief executive for nearly fifteen."
Rose praised his successor as "an excellent choice" and backed Rishton to do an "outstanding" job.
Rishton said he was "proud" and "excited" about taking the CEO post.
The announcement triggered a tribute to Rose from business secretary Vince Cable. "Sir John Rose has been a tremendous business leader for Rolls-Royce," Cable said.
He added: "As a champion of UK manufacturing I want to thank him for the huge contribution he's made to strategic thinking both within business and government."
Cable added that he looked forward to working with Rishton from next spring.
Rishton's CV includes senior posts at British Airways and Ford.