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The government's role in the appointment of Sir Michael Lyons as BBC Trust chairman has been criticised in a report by the House of Lords communications committee.

The report said the government should have a limited role in appointments to the position, adding that ministers had "considerable opportunity" and "considerable powers" to affect the process through which Sir Michael was selected.

"Ministers appointed the selection panel, ministers were allowed to change the shortlist of candidates and ultimately ministers were able to choose between the four candidates who passed the interview process," the report said.

It recommended that the head of the selection panel be a civil servant or a political figure. The person put forward for the position of the BBC Trust chairman should also be subject to a parliamentary inquiry before his appointment and should be subject to a six-month notice period.

A spokesman for the BBC said the appointment of a new chairman was under the purview of the Department for Culture, Media and Sport (DCMS).

The DCMS said the selection process followed "strict guidelines set by the commissioner for public appointments" and that "the appointment was made on merit after a fair, open and transparent process".

Liberal Democrat culture spokesman Don Foster said: "This report highlights the failure of the government's post-Hutton attempts to reform the BBC. There is now real confusion as to who ensures the BBC remains independent from political interference and who is representing the interests of the license fee payer.

"The Liberal Democrats pointed out to the government over three years ago that the role they were creating was ill-defined, and that the trust was the wrong body to fulfil the task it had been charged with. It's impossible for the trust to act as both 'flag-wavers' and regulator."

Sir Michael was appointed after previous chairman Michael Grade left for ITV.