Tracey McDermott is likely to be appointed as chief executive of the Financial Conduct Authority (FCA) within weeks, according to the Sunday Times.
The paper said on 3 January McDermott, the current acting CEO, was the frontrunner to be named Martin Wheatley's successor.
It added the appointment was likely to be made within weeks. The report said the FCA was under pressure after it decided to scrap a key review into culture at the country's largest banks. It made the announcement last week.
McDermott took over as acting chief executive of the FCA after Wheatley was pushed out by Chancellor George Osborne.
"Tracey has proven to be a really strong regulator," the chief executive of one British lender told the Sunday Times. "It's clear she has been briefed by the Treasury to take a more collaborative approach with the banks."
Speaking in October, last year, McDermott vowed to break what she called the "regulate, de-regulate, repeat cycle" of financial services regulation.
