David Cameron has appointed LOCOG chief Paul Deighton as commercial secretary to the Treasury to oversee the delivery of UK infrastructure - a key building block in his plans to help revive the UK's flagging economy.

The appointment forms part of the prime minister's latest reshuffle and will see the former Goldman Sachs investment banker take over the reigns currently held by Lord Sassoon - the first ever holder of the post since May 2010, early next year.

Deighton's new - and unpaid role - will see him oversee and steer the National Infrastructure Plan, the new PFI model and UK Guarantees scheme, which will help underwrite national infrastructure schemes.

The former European chief operating officer for Goldman Sachs will take up his place in House of Lords and report to the chancellor of the exchequer George Osborne.

Cameron said: 'I am delighted that one of the most talented leaders Britain has is joining the government. His appointment proves this government means business in terms of delivering infrastructure projects and economic revival.'

At LOCOG Deighton was in charge of operations and helped raise £2bn from the private sector to working closely with the Olympic Delivery Authority to ensure the Olympic Park venues and other infrastructure developments were delivered on time.

Deighton said: 'Over the last seven years I have seen extraordinary British companies and incredibly talented British people deliver on the building, staging and hosting of the London 2012 Games.

'The public/private sector collaboration in delivering these Games has been vital to their success. I am delighted to accept the prime minister's and chancellor's offer to apply this experience and what we have learnt to the broader UK economy.

'I very much look forward to taking on my new responsibilities in January 2013. In the meantime my entire focus is on delivering a fantastic Paralympic Games that continues to showcase great sport and the best of Britain to the world.'

Deighton also led LOCOG's relationships with key stakeholders including the Mayor of London and the British Olympic and Paralympic Associations.

Osborne said: 'Paul is a man who has shown he can deliver. I am grateful that Lord Sassoon has agreed to stay on until Paul takes up his appointment, and thank him for his service to the government. He's done a very good job.'

Greg Clark is rumoured to be being lined up to replace Mark Hoban as Treasury minister.