Dragons' Den panellist Richard Farleigh has been dropped from the next series of the hit BBC2 business reality show.

The BBC has confirmed that the Australian businessman is being dropped from the line up of five business "dragons" when the show returns in the autumn with presenter Evan Davies.

A BBC spokeswoman confirmed that Mr Farleigh had been replaced but declined to disclose the identity of the new dragon.

"Richard will remain very much a part of the Dragons' Den team and will appear in related shows such when we catch up on some of the investments," said a BBC spokeswoman.

"It is a perfectly normal transition for the series. We do not discuss the reasons for the decision but it is all very amicable."

However, Mr Farleigh described himself as "gutted" by the decision. "I have thoroughly enjoyed being a dragon - it is an illustrious group.

"I was looking forward to taking part in the next series," he said.

"I had even moved back to the UK to focus on commitments for the show. I am gutted that I have not been invited back to be part of the new series."

Mr Farleigh is the second most generous Dragons' Den investor in projects put forward by contestants. Over two series he invested around £130,000 of his own money.

"He is a very serious businessman and he has invested more than most of the other dragons in projects," said his spokesman.

"He is the country's leading investor in small start-up business. He may not be the richest but he is the most committed and he has been particularly adept at backing a lot of science out of the universities - crazy, life-changing ideas that usually scare away most investors."

Mr Farleigh joined the Dragons' Den panel in 2006 alongside a fellow newcomer, leisure and retail businesswoman Deborah Meaden, and has appeared in two series of the show.

The duo were brought in to replace Doug Richard and Rachel Elnaugh, who left to "concentrate on their respective new business ventures" according to the BBC at the time.

Mr Farleigh and Ms Meaden joined three existing dragons, businessman Peter Jones, health-club magnate Duncan Bannatyne and Cypriot entrepreneur Theo Paphitis, all of whom have been retained for the next series.

He first made his millions trading the world's financial markets and has also written a book on his "100 secret strategies for investing" called Taming the Lion.

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