Peter Mandelson is to become the UK’s next ambassador to the United States.
The Labour peer and former cabinet minister is expected to take up the role in the New Year.
He will take over from Dame Karen Pierce, the current ambassador, whose tenure is will come to an end at the start of 2025.
A government source said: “The fact the prime minister has chosen to make a political appointment and send Lord Mandelson to Washington shows just how importantly we see our relationship with the Trump administration.
“We’re sending someone close to the prime minister with unrivalled political and policy experience, particularly on the crucial issue of trade. He’s the ideal candidate to represent the UK’s economic and security interests in the USA.”
Lord Mandelson served in government under both Tony Blair and Gordon Brown, who controversially made him a peer to bring him back into the cabinet as business secretary in 2008.
The former MP for Hartlepool had been the Britain’s European commissioner since 2004.
Last month, the Labour peer told the BBC’s Sunday with Laura Kuenssberg show last month that he would be “very interested” in giving advice on trade to whoever became the UK’s ambassador to America.
He said: “Can I just make the point if you don’t mind: nobody has spoken to me about this job.
“I read about it in the papers but nobody has actually spoken to me about it, so let’s put it to one side.”
Pushed further on whether he would be interested in the role, the former government minister said: “I would be very interested indeed in giving advice about trade to whoever is appointed.”
Lord Mandelson also said last month that the government should consider using Reform UK leader Nigel Farage as a “bridge” to president-elect Trump and Elon Musk.