Bolland, currently CEO of William Morrison Supermarkets , the UK's fourth largest grocer, will take up his new post in the New Year at a time and on terms to be confirmed. He will succeed Stuart Rose as CEO but Rose will continue as part-time chairman to ensure a smooth transition, M&S said in a statement.

As previously stated Rose will leave M&S by July 2011.

Bolland has been CEO of Morrison's since 2006.

Shares in M&S were up 4.3 percent at 384.9 pence at 11:42 a.m.. Shares in Morrison's were down 3.7 percent at 284.8 pence.

(Reporting by James Davey, editing by Paul Sandle)