New Zealand high court judge Justice Lowell Goddard has been named as the latest chair of the troubled child abuse inquiry.
Home Secretary Theresa May said in a statement to MPs that a new statutory inquiry will be established, meaning the current panel will be dissolved.
Current members will be able to reapply for their roles.
The terms of reference are also being looked at, meaning that the investigations could potentially go back beyond 1970.
Mrs May said she was "more determined than ever" to expose those who had failed victims.
"The Home Office received more than 150 nominations from survivors, their representatives, MPs and members of the public," she said.
"In addition, the Home Office also contacted Commonwealth countries via the Foreign Office to identify any suitable candidates.
"Each and every name was assessed against a set of criteria incorporating the views of survivors on the most important factors.
"This included the appropriate skills to carry out this complex task, experience of that subject matter, and the absence of any direct links to any individual about whom people may have concerns, or any institution or organisation that might fall under the scope of the inquiry."
Justice Goddard was admitted to the bar in 1975 and is currently based at the High Court in Wellington.
Speaking ahead of the announcement, child abuse lawyer Dino Nocivelli told Sky News: "Survivors of child abuse are often mistrustful of authority figures, and this is perfectly understandable considering the abuse they have suffered.
"The fact that survivors are still waiting for a truly independent inquiry is truly an embarrassment and inexcusable."
The first chair of the inquiry was Baroness Butler-Sloss, who stood down in July amid questions over the role of her late brother, Lord Havers, who was attorney general in the 1980s.
Her replacement, Dame Fiona Woolf, resigned after criticism of her links to the establishment, most notably in relation to former home secretary Leon Brittan, who died last month.
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