Sir Ken Morrison is to step down as executive chairman of supermarket chain Morrisons after more than 40 years in charge, it has been reported.

The 74-year-old is expected to finalise his plans within weeks and will make an announcement at the annual meeting of the Bradford-based firm later this month, according to a Sunday newspaper.

According to the report, Sir Ken has decided to announce a public timetable for his departure to ensure an orderly handover to a new chief executive.

However, sources close to the company denied that any announcement was imminent.

Morrisons is battling back from the first annual losses in its 106-year history and unveiled a blueprint in March that includes £60 million of cost savings.

But the City has long wanted a clear plan of succession to Sir Ken, whose reputation took a knock from the problems of integrating Safeway following its £3 billion take-over last year.

According to the report, the Morrisons board is conducting a beauty parade of head-hunters who will search for a new non-executive chairman.

An internal appointment to the post is thought to be unlikely.

The report said that Sir Ken believes he will be able to concentrate on the handover of power without the constant distraction of speculation about his future if he announces a timetable for his departure. It is thought that one scenario being discussed by board members involves him stepping down within 12 months.

Morrisons has been criticised in recent months for its slowness to appoint a successor to Bob Stott, the incumbent chief executive.

But it is understood that the company is closer to making a decision with three external candidates having been shortlisted for the job, including Ian Meakins, who will step down as chief executive of Alliance UniChem when it merges with Boots.

Morrisons is the UK's fourth largest grocer, generating sales of more than £12 billion a year. Although the acquisition of Safeway gave it 5.5 million new customers, it also brought problems including dual running costs in areas such as distribution, administration and IT.

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