AIB is set offer its new chief executive a package worth almost €1m, according to reports this morning.

The Government has capped the salary at €500,000, but the Irish independent has said this will be topped up with extras like share offers.

Two top international bankers with Irish connections are believed to be in the running for the post - David Duffy formerly of the Dutch bank ING and Brendan McDonagh who has worked with HSBC.

The final package will have to be approved by Finance Minster Michael Noonan.