The board of Bord Failte has recommended the appointment of senior civil servant Mr John Dully as its new director general. The Minister for Tourism, Sport and Recreation, Dr McDaid, must now approve the appointment and an announcement is expected shortly.

Mr Dully is currently assistant secretary in Mr McDaid's department and tourism is among his areas of responsibility. He is in his early 50s and has spent most of his working career in the civil service. His brother, Mr Martin Dully, was previously director general of Bord Failte and later its executive chairman.

Mr John Dully previously worked in the departments of Foreign Affairs and Industry and Commerce and also spent a year's sabbatical working in Russia, in a company chaired by the current Minister for Foreign Affairs, Mr Andrews. Mr Dully, as assistant secretary, is deeply involved in policy-making in the tourism industry. He is understood to be central to recent discussions on the future of tourism marketing on the island of Ireland. Following the Belfast Agreement, there has been discussions between the two governments on the possibility of creating one tourism marketing body for Ireland.

Sources say that these discussions are still at a preliminary stage and that it is not yet clear what kind of reorganisation may be put in place over the next couple of years. Mr Dully's expected appointment means that Bord Failte will be led by an executive who is familiar with these negotiations and aware that the long-term future of the organisation is unclear.

Mr Dully is set to replace Mr Matt McNulty, who resigned unexpectedly last April. The post carries a basic salary of £67,000 per annum which, after productivity bonuses, could rise to around £80,000. The recommendation of his appointment comes after three short-listed candidates were interviewed, from an original 64 applications.