DCLG's new permanent secretary is to be Homes & Communities Agency chief executive Sir Bob Kerslake who will take up the post vacated by Sir Peter Housden's June move to the Scottish Government on 1 November.
Communities secretary Eric Pickles said he was delighted with the appointment.
Sir Bob had had an impressive record in local government and would make an invaluable contribution at a crucial time.
Sir Bob became the first chief executive of the HCA, which looks set to survive the onslaught on quangos, after it was created in 2008.
His earlier career took him from transport finance at the Greater London Council, to Hounslow Borough Council as director of finance and chief executive and to Sheffield City Council where he was chief executive from 1997 to 2008.
"He will bring a wealth of experience and credibility to the role, driving forward the new Government's agenda for devolution of power and autonomy to local councils and neighbourhoods," said cabinet secretary Sir Gus O'Donnell.
"I would like personally to thank Irene Lucas, who has done a tremendous job leading the Department as acting permanent secretary since Peter Housden's departure."
Sir Bob said he was honoured and excited by the opportunity to manage a department and drive the localism agenda.
