Santander UK confirmed that Lord Burns will step down as chairman after he presented his resignation as a member of the bank's board in January.
However, Santander said in a statement that Burns will remain as chairman until his successor is appointed, to ensure a smooth transition.
"It is the intention to have a new chairman in place by the end of 2014," it confirmed.
Who is Lord Burns?
Lord Burns was appointed Joint Deputy Chairman on 1 December 2001 and Chairman on 1 February 2002 at Santander UK.
He is also Chairman of Channel 4 Television Corporation and a Non-Executive member of the Office for Budget Responsibility and a member of the Whistleblowing Commission.
His current professional roles include President of the Society of Business Economists, Fellow of the London Business School, Companion of the Institute of Management, President of the National Institute of Economic and Social Research and Vice President of the Royal Economic Society.
He was formerly Permanent Secretary to the Treasury and chaired the Parliamentary Financial Services and Markets Bill Joint Committee.
He was a Non-Executive Director of British Land plc (2000-2005), Pearson plc (1999-2010) and Legal & General Group plc (1991-2001). He was also Chairman of the National Lottery Commission (2000-2001), Marks and Spencer Group plc (2006-2008) and Glas Cymru Cyfyngedig (Welsh Water) (2000-2010).