Antonio Horta-Osorio, a Portuguese native who has increased market share and driven efficiencies at Santander's UK operations, is set to take the top job at London rival Lloyds Banking Group, according to two people familiar with the matter.

Horta-Osorio will replace Lloyds chief executive Eric Daniels, who in September announced his decision to retire within a year after steering the bank through the financial crisis and its loss-making acquisition of HBOS.