Asda's chief operating officer, Richard Baker is in negotiations with Boots to become the high street retailer's new chief executive according to a report in the Daily Telegraph.

An observer said: 'I would be surprised if Richard didn't accept it. He has always wanted to be chief executive of a FTSE 100 company.' Boots has been losing market share to the supermarkets in particular Tesco and Asda. The retailer has been using headhunters Whitehead Mann to search for a successor to Steve Russell.

Mr Baker has worked at Asda for eight years and is currently number two to Tony De Nunzio, Asda's chief executive. He was recruited by Allan Leighton.