The search for Sir Ken Morrison's successor could be drawing to a close.

Sir Ken, chairman of the supermarket giant which bears his name, said that he expects an announcement on who will take on his role "in the near future".

The plan is the new appointment will initially join the company as deputy chairman before taking over as chairman following Sir Ken's retirement in 2008.

Sir Ken made the remarks while speaking at Morrisons' annual general meeting, where he also revealed that Morrisons' steady growth from last year was continuing in 2007, with like-for-like sales up by four per cent in the 15-week period ended May 20.

It follows on from the firm's preliminary results from last year which showed solid boosts in growth and sales following the tumultuous takeover of Safeway, a process which saw the supermarket announce the first losses in its history.

Sir Ken said: "2006 to 2007 saw a good demonstration of the sound progress we have made towards our former operating standards. The absorption of the Safeway business was completed and we saw solid growth in sales, profit and cash generation.

"As expected our cash flow has been strong so far this year. In part this has been due to seasonal working capital benefits but also to corporation tax refunds from earlier years.

"During the period we have signed a new lease for an additional distribution facility in Swindon, which will allow us to reduce our distribution miles travelled considerably.

"During the period we sold our ancillary property, not required for business, for a profit of £14 million."

Plans for eight new stores were revealed in destinations as far apart as Bristol and Dundee.

Earlier this year, Morrisons' new chief executive Marc Bolland mapped out a new vision for the firm after an extensive company wide review.

This included designs to have more people preparing food in stores than any other retailer and being closer to sources than any other retailer. The company's old yellow and black logo was also replaced and the "more reasons to shop at Morrisons" slogan dropped.