BT chief executive Ben Verwaayen is to step down as head of the group on May 31st 2008 after more than six years with the company.
Ian Livingston, who is currently chief executive of BT Retail, is to succeed Ben Verwaayen as chief executive of BT Group on June 1st 2008.
The telecoms giant's chairman Sir Mike Rake has credited Mr Verwaayen with a turnaround at the company.
Sir Mike said: "Ben has been an exceptional CEO whose courage and leadership has transformed BT from being a deeply troubled organisation into a thriving business with global capability and a clear strategy for the future.
"Ben has done more than anyone else to make Britain the most competitive broadband market in the world."
Mr Verwaayen led BT's aggressive expansion into broadband, Sir Mike added.
Ian Livingston joined BT as group finance director in 2002. He took over as chief executive of BT Retail in 2005.
His job will be taken over by Gavin Patterson, currently group managing director of BT's consumer division.
Mr Livingston was the board's "unanimous choice" Sir Mike said.
Shares of BT fell 2.25p to £2.27 in early trading.
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