Veteran publisher Nicholas Gray has been named the new chief executive of News Limited’s flagship newspaper, The Australian.

A former investment banker, Mr Gray jumps on board The Australian after driving the newly acquired Business Spectator service, where he is currently general manager and publisher.

News Limited’s chief executive, Kim Williams, welcomed Mr Gray to the position, saying that his efforts in driving Business Spectator shows he possesses a keen media mind.

The 39-year-old will replace John Webster, who announced his intention to retire late last week.

"The Australian has been my newspaper of choice for many years. I am thrilled to be appointed as CEO. The quality of the newspaper's journalism and opinion speaks for itself.

"The strong growth in digital subscriptions show that this quality journalism is translating to our web, mobile and tablet offerings. I am also pleased to retain my current responsibilities at Business Spectator where a management appointment will be made to manage the business's continuing operation."