New Zealand's finance minister Bill English will be sworn in as the country's 39th prime minister on Monday after his colleagues chose him as their new leader.

The 54-year-old former farmer emerged victorious from a meeting of the conservative National Party caucus.

Two other candidates for the job withdrew last week after Mr English gained more support than them.

His ascension from deputy prime minister follows the surprise resignation last week of John Key after eight years as prime minister.

Mr Key was a popular leader and was expected to contest a fourth straight election next year.

However, he said he wanted to leave while he was on top and to spend more time with his wife and two children.

Mr English has degrees in commerce and literature. He has been praised for his handling of the country's economy in his role as finance minister.

New Zealand's PM John Key announces shock resignation

A practising Roman Catholic, Mr English has been a politician for 26 years, after he was first elected to the parliament in 1990.

He had a previous unsuccessful stint as party leader, taking his party to a big election defeat in 2002. He said he has gained wisdom and experience since then.

“I was 39 years old then, with six children under 13,” he said last week. “So if nothing else, I've got the opportunity to focus much more on the job now.”

New Zealand Earthquake in pictures Show all 9 1 /9 New Zealand Earthquake in pictures New Zealand Earthquake in pictures A powerful earthquake struck in a mostly rural area close to the city of Christchurch but appeared to be more strongly felt in the capital, Wellington, more than 200 Km (120 miles) away AP New Zealand Earthquake in pictures Access to the ramp for the Bluebrige Cook Strait Ferry was cracked, after a 7.5 earthquake based around Cheviot in the South island shock the capital, in Wellington, New Zealand EPA New Zealand Earthquake in pictures Broken glass and debris covers part of the road on Featherston Street after an earthquake in Wellington, New Zealand Getty New Zealand Earthquake in pictures The 7.5 magnitude earthquake struck 20km south-east of Hanmer Springs at 12.02am and triggered tsunami warnings for many coastal areas Getty New Zealand Earthquake in pictures New Zealand Earthquake in pictures New Zealand residents standnear the top of Mt Victoria, the highest hill in Wellington Getty New Zealand Earthquake in pictures Ships head out into the harbour in Wellington, following an earthquake centred some 90 kilometres (57 miles) north of New Zealand's South Island city of Christchurch Getty New Zealand Earthquake in pictures New Zealand residents park cars near the top of Mt Victoria, the highest hill in Wellington Getty New Zealand Earthquake in pictures Amora Hotel guests gather in a carpark after an earthquake in Wellington, New Zealand Getty

Under Mr English, New Zealand has been enjoying relatively robust annual GDP growth of more than 3 per cent and the unemployment rate has fallen below 5 per cent.

He has also managed to return small surpluses on the government's books over the past couple of years.

Mr English said he will deliver tax cuts and spread the country's growing wealth to where it is needed.