The role of e-envoy is to be scrapped, the government has announced.

Instead, ministers will replace the position with a new head of e-government, who will be responsible for ensuring that the government meets its targets on electronic service delivery.

In addition, he or she will be charged with implementing a government-wide information systems strategy to support public sector reforms, and provide leadership for Whitehall's IT community.

The current e-envoy, Andrew Pinder, stands down in 2004 after four years in the job.

"The appointment of a head of e-government represents an evolution in the e-envoy role which will build on the achievements of the last four years," said Cabinet Office minister Douglas Alexander.

"The head of e-government will play a pivotal role in supporting the prime minister's vision for public services reform. Their task will be to focus on ensuring that IT supports the business transformation of government itself so that we can provide better, more efficient, public services."

The announcement came as the trade secretary confirmed that a new Digital Inclusion Panel will be established to provide advice to government and industry about how to increase take-up of digital services.

It will be charged with identifying those groups most likely to face "digital exclusion", such as those in rural areas, as well as examining possible methods of improving links between industry and ministers.

"The prime minister's appointment of an e-envoy four years ago has been a clear success," said Patricia Hewitt.

"The UK is now one of the world's most connected economies with ICT firmly embedded in the economy, education and wider society. Today's report shows that we have made substantial progress over the last four years in extending the benefits of the internet to everyone who wants access to it."

She said the government would "continue to bridge the digital divide".

"The digital inclusion panel will play a key role in helping us ensure that every home in the UK should have a connection to online services through a digital network by 2008 - whether through a personal computer, DTV, mobile phone or other device," added Hewitt.