The chairman of Royal Dutch Shell has been appointed to lead a government science agency charged with ramping up the UK’s innovation credentials after Brexit.

Sir Andrew Mackenzie has be named as the preferred candidate to chair UK Research and Innovation (UKRI), which has an annual budget of almost £8bn.

His nomination has been signed off by business secretary Kwasi Kwarteng, though it will be subject to approval by MPs on the science and technology select committee.

Mackenzie, who previously served as chief executive of mining giant BHP, saw off competition for the job from two prominent rivals, according to the report.

If confirmed, the high-profile businessman will replace Sir John Kingman as UKRI chair. Kingman, who also chairs Legal & General and Tesco Bank, announced he was stepping down from the role last year.

The move will form an important step in the government’s efforts to bolster the UK’s ability to make world-leading advances in science and innovation, especially in the aftermath of Brexit.

“Sir Andrew’s impressive track record at the top tier of business will offer UKRI the strong, commercially-minded leadership it needs to cement our position as a global science superpower,” Kwarteng said in a statement. “I look forward to working closely with Sir Andrew as we unleash the firepower of UKRI to drive an innovation-led recovery across the United Kingdom.”

He added: “I’d also like to thank the outgoing chair, Sir John Kingman, for leaving an excellent legacy to build upon as we move forward.”

UKRI, which was launched in 2018, houses bodies including Innovate UK, a quango that has provided funding for projects including a trial of vaccine passports earlier this year.

Last month Innovate UK appointed tech executive Indro Mukerjee as its first permanent boss.

The appointment is said to be key to the government’s plan of ramping up research and development spending to 2.4 per cent of GDP by 2027.