LONDON (Reuters) - Lord Terry Burns, a former permanent secretary to the Treasury, has been appointed the next chairman of Channel 4, to oversee the selection of a new chief executive and a possible partnership with the BBC.

Media regulator Ofcom made the announcement on Thursday because the broadcaster is publicly owned but funded by advertising.

Burns has held a number of high profile jobs in recent years, including leading a review of the BBC for the government, reviewing the Football Association and leading the group which regulates the lottery.

He was also the chairman of Marks and Spencer and is the chairman of Abbey.

"I am delighted to be joining Channel 4," he said. "This is a time of great change as we experience the impact of the rapid development of digital technology in the communications sector and Channel 4 has a very special and continuing role to play."

Burns' first task will be to help find a chief executive for Channel 4, home to Big Brother and hard-hitting documentaries, after Andy Duncan said he would step down.

The group has also been holding talks with the commercial arm of the BBC, BBC Worldwide, over a possible partnership or tie up.

(Reporting by Kate Holton; editing by Simon Jessop)