Barclays, Britain's third-biggest bank, is likely to decide shortly on a successor for its Irish-born chief executive, Mr Matthew Barrett, who may assume the chairman's role, according to sources.

"There is a high expectation the decision will be by the end of October," the source told Reuters. The two candidates are Mr Bob Diamond, head of the Barclays Capital investment banking unit, and finance director Mr John Varley.

The bank's board is expected to choose a replacement for Mr Barrett, who took over the top post in 1999, shortly.

Mr Barrett is the former chairman of Bank of Montreal, and has spent most of his career in Canada.

Barclay's chairman, Sir Peter Middleton, will retire next year. Mr Diamond is reported to have been approached by headhunters about investment banking jobs in the United States, but he has made no decision to leave Barclays if he misses out on the CEO job, the source said. - (Reuters)