A senior figure at the World Bank is set to join Gordon Brown's team at the Treasury.

Officials announced on Thursday that Professor Nicholas Stern is to join the chancellor's civil service team as the second permanent secretary.

Currently chief economist and senior vice president at the World Bank, 57-year-old Professor Stern will take over from Sir Robert Culpin who retires this autumn as managing director of budget and public finance.

Professor Stern will also take over the responsibility of Gus O'Donnell, the Treasury's permanent secretary, as head of the government economic service.

The appointment of a highly respected player in international financial politics will be a major coup for Brown who is campaigning for sweeping reforms to the way international finance is run.

His work on cutting Third World debt has focused on the World Bank, so employing a senior member of the organisation - whose CV also includes a stint at the European Bank working on reconstruction and development - will be a useful boost to his efforts.

And the chancellor did not hide his delight.

"Nick is a first class economist with a global reputation and enormous experience. He will be a huge asset to the Treasury and government economic policymaking," he said.

O'Donnell also welcomed the appointment.

"Nick is one of the world's leading economists. He has an outstanding track record in both the academic world and in front line economic policymaking and delivery at the World Bank and the EBRD," he said.

"That someone of his calibre has chosen to come here is a tribute to the Treasury and its reputation."