Serco, one of the stakeholders in Together for Children, was named as the preferred bidder to take on the running of the city's children's services department.
Four private companies had been shortlisted for the job after the DfES intervened to send in advisers late last year following a crisis in the council's children's services department.
The 5m, three-year contract will be jointly funded by the city council and the Government, and Serco is expected to start work next month.
The name of the new external director and details of the senior management team are to be announced shortly.
Councillor Ian McLaughlan, who leads on Children and Young People, said, 'Our new director comes with a good track record. He will fit in well with the council's new drive for excellence and will certainly get the job done.'
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