Higgins, 58, will start on May 2 pending regulatory approval.

Higgins has had a 36-year career at Rothschild and was previously managing partner and co-chairman of the group’s executive committee until September 1 last year.

He was the first non-Rothschild to lead the group.

“In Nigel Higgins we have found an ideal candidate,” said Crawford Fillies, the independent director who led the process for selecting Higgins.

“He is a hugely respected banker, a strategic thinker, someone with extensive international experience and has a strong positive leadership style.”

McFarlane has transformed Barclays over his four years in office, implementing a major restructuring programme that included layoffs and the sale of numerous foreign assets.

The lender now only has a retail and investment banking presence in Britain and the United States.

Shortly after becoming Barclays chairman in 2015, McFarlane dismissed then chief executive Antony Jenkins and named Jes Staley to replace him.

McFarlane said leaving had been “a difficult choice”.