Technology giant Microsoft has said Satya Nadella will succeed Steve Ballmer as its next chief executive, according to BBC News.

Nadella is currently Microsoft's head of Cloud and Enterprise, which builds and runs the firm's computing platforms and developer tools.

In August, Ballmer said he would retire within 12 months. Leaders from a range of industries are rumoured to have been considered for the post.

Microsoft also said founder Bill Gates would step down as chairman. Gates will take up a new role as technology adviser and will also retain a seat on the board.

Microsoft's lead independent director John Thompson is to take over from Gates as the company's chairman. Thompson led the search committee for Microsoft's new chief executive, and said last year that more than 100 possible candidates had been identified.