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The decision was announced by the BBC at a press conference early on Friday evening.

In a statement the board of governors said that the decision was unanimous.

Speaking on behalf of the Board, BBC Chairman Michael Grade said: "We were impressed by Mark Thompson's analysis of the challenges facing the BBC, and by his track record. We concluded that he was the right person to lead the BBC at this important period in its history."

He added: "All the Governors wish to place on record their immense gratitude to Mark Byford for his outstanding stewardship of the BBC over the last few difficult months."

Just this morning it was reported that Thompson was being interviewed for the job just a week after Grade took up his new role.

According to reports, earlier today Thompson cancelled his internal meetings at Channel 4 this morning to be interviewed by the BBC at White City today.

In being awarded the DG's job Thompson beat acting BBC director-general Mark Byford; Jenny Abramsky, the director of radio; John Willis, the director of factual programmes; and Jana Bennett, the BBC's director of television.

External candidates were thought to have included Michael Jackson, who was chairman of Universal Television prior to its merger with NBC to create NBC Universal. Jackson, who was the chief executive of Channel 4 immediately before Thompson, is expected to leave NBC shortly.

At Channel 4's annual results last month, Thompson ruled himself out of the race, saying that he would turn down any approach from the BBC. However, he declined to sign a new contract that would keep him at Channel 4, prompting speculation that his real interest lay at the BBC.

Thompson joined Channel 4 from the BBC where he director of television, having previously held roles as Panorama editor and controller of BBC Two.

Thompson has remained the bookies' favourite for the BBC job even after he ruled himself out of the race to replace Greg Dyke, who was ousted in January this year in the wake of The Hutton Report.

On taking up his new position as chairman on Monday, Grade stressed the importance of the director-general's crucial role as the corporation faces its charter review. He has also pledged that whoever succeeds Dyke will have a far less rocky relationship with governors and in a statement he said that he wanted to review their regulatory role.

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