President George W Bush has nominated US Deputy Defence Secretary Paul Wolfowitz as the next head of the World Bank, a key development agency.

Mr Wolfowitz has earned a reputation as a hawk during his time as Defence Secretary Donald Rumsfeld's deputy, and was a strong advocate of the Iraq war. President Bush described Mr Wolfowitz as a "compassionate, decent man" committed to global development.

His choice of a hardliner to run the agency is likely to be controversial.

Controversial
Mr Bush said Mr Wolfowitz was "a man of good experience" and a skilled diplomat who had "helped manage a large organisation" during his time at the Pentagon.

Privately, current World Bank president James Wolfensohn had made it clear that he had wanted to continue but failed to get White House backing. He was appointed by Democrat former President Bill Clinton, and will be leaving on 1 June after 10 years in charge.

The White House began notifying other nations of its choice earlier in the day.

Mr Wolfowitz is a deeply controversial figure in US politics, the BBC's Justin Webb reports from Washington. He is associated with the so-called "neo-conservatives" - senior figures in and around the Bush administration who believe that America needs to be very active in pressing the case for its values around the world, our correspondent says.

His nomination has been welcomed by International Monetary Fund head Rodrigo de Rato and UK Foreign Secretary Jack Straw. Both men praised Mr Wolfowitz's experience and said they were looking forward to working with him. Mr Straw said the US president's choice was "very distinguished and experienced internationally".

It is the second time within weeks that Mr Bush has appointed a hardliner to a key international post. Earlier in March he nominated Under-Secretary of State John Bolton to be US ambassador to the United Nations - a body Mr Bolton has repeatedly derided.

Seeking support
The World Bank numbers 184 states among its members, and is responsible for leading global efforts to promote economic development and reduce poverty.

For the appointment to go ahead, Mr Wolfowitz must be formally approved by the World Bank's executive board. In a statement, the Bank said its directors were responsible for making the selection and were "in the process of consultations with the member countries they represent".

"An official announcement of the outcome of the deliberations and actions of the Executive Directors will be made as soon as a decision has been reached," the Bank said.

US appointments to the World Bank presidency are usually unchallenged, as are European nominations to lead the International Monetary Fund. But there remains the possibility of a veto similar to that used by the US to stop Europe's choice for IMF chief, Caio Koch-Weser, from getting the job in 2000.

The Bank's former chief economist Joseph Stiglitz has criticised Mr Wolfowitz's candidacy, saying he has no experience in economic development or financial markets. "Even if convention allows the American president to appoint the World Bank's head, the organisation's success depends on the confidence of others," Professor Stiglitz wrote in the UK-based Guardian newspaper last week.

On a recent visit to Brussels, the Bank's current president said his successor should be passionate about battling poverty and not merely an efficient manager. He declined to comment directly on Mr Wolfowitz's candidacy.

Mr Wolfowitz is likely to prove "very sympathetic to new initiatives to revive African and other developing economies" and a "real zealot" on the need for better governance, said Professor John Stremlau of the Centre for Africa's International Relations at South Africa's University of Witwatersrand. The choice was "going to rub people up the wrong way" but in time Mr Wolfowitz could prove to be "a very important and good leader", he said.

The list of candidates rumoured to be in the running included Carly Fiorina, the recently ousted boss of giant computer firm Hewlett-Packard.