The appointment of Stephen Marston, director general for higher education funding and reform at BIS, follows a troubled period for the institution.

In 2008-09, it recorded a ?6.3 million deficit. Although it posted improved results the following year, it still suffered an overall deficit of ?1.2 million. It also has a large debt-to-income ratio, and last autumn it faced a damaging employment tribunal brought by an internal whistleblower, business development manager Jan Merrigan.

The university announced last November that it was seeking to appoint a new vice-chancellor just three months after Paul Hartley had been made acting vice-chancellor.

Dr Hartley stepped in after Patricia Broadfoot announced her retirement as vice-chancellor amid rows over the university¡¯s financial state.

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Speaking after his appointment was announced today, Mr Marston said he was joining an institution that had ¡°great strengths, enormous potential and is successfully rebuilding its financial position. It is fast becoming the type of agile, high-quality, market-aware university that will thrive into the future.¡±

The Rev Malcolm Herbert, chair of the university council, said: ¡°This appointment signals a new phase in the development of the university as it gets stronger financially and looks forward to the opportunities the new higher education landscape will bring.¡±

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He expressed a ¡°debt of gratitude¡± to Dr Hartley, saying that he had done an ¡°excellent job in extremely challenging circumstances to continue to provide academic leadership and to turn the university around financially¡±.

john.gill@tsleducation.com