Chief operating officer set to be next Asda boss

Insiders believe the appointment could be announced as early as next week.

He will replace Andy Bond, who is stepping down to take on a three days a week chairmanship role at the Leeds-based supermarket chain.

The retailer declined to comment on the speculation, but a spokeswoman confirmed the group hopes to make an announcement on its new chief executive in the next few weeks.

The group also confirmed that its trading director Darren Blackhurst has quit – a move thought to have been sparked by Mr Clarke's promotion.

Mr Bond issued a memo to staff informing them of Mr Blackhurst's departure, adding: "With the pending change in chief executive, we have had discussions about his future and he is taking some time out before ultimately pursuing his career elsewhere."

The new chief executive will take over the reins at a challenging time for Asda. While the firm reported record results in 2009, with like-for-like sales up six per cent, its market share has slipped in recent months due to strong competition in the UK.

Supermarket margins are also being squeezed by plunging food price inflation.

Bookmaker Ladbrokes named Mr Clarke as favourite to replace Mr Bond after his announcement last month.

Mr Clarke was previously retail director at the supermarket, but was promoted to his current role in February 2009 – a decision that prompted speculation at the time over a succession strategy.