BT Group CEO Ian Livingston will leave the company in September to take on a new ministerial role within the coalition Government.
In his new role as Minister of State for Trade and Investment, Livingston will be responsible for overseeing activities that will boost UK exports and attract overseas investment.
In December, Livingston will take over from Lord Stephen Green, who has held the role since 2011 and is retiring from Government.
In a statement, The Prime Minister David Cameron thanked Lord Green for the contribution he has made to the UK economy, while hailing Livingston's business attributes.
"[Livingston] is an outstanding business leader and it is a testament to the importance of this role that he has agreed to serve in the Government in this capacity," the statement read.
"I know he will make an invaluable contribution to his agenda as the Government continues to open new trade links and grow our experts, and I very much look forward to working with him."
Meanwhile, Livingston said it was a "huge honour" to be asked to join the Government, but a "difficult decision" to leave BT.
"The Government has shown great commitment to the promotion of UK trade and investment...[and] I am looking forward to the important work ahead," he added.
Livingston will be succeeded at BT by Gavin Patterson in September, who has previously served as the chief executive of BT Retail, and has been a member of the company's board since 2008.
"We have the people, the technology and the plans we need to build on our current successes," said Patterson, in a further statement.
"I look forward to leading a dynamic team to ensure we do just that."
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