The chief executive partner of Australian firm Clayton Utz is to step down from the leadership role next year, to be replaced by litigation partner Robert Cutler.

Darryl McDonough, who has held the position for four years, will remain a partner at the firm but return to practice in Brisbane, working on corporate and M&A transactions.

He was originally appointed to the role for a period of three years in July 2010, succeeding David Fagan, but his term was extended by an additional year.

Fagan served as chief executive partner from May 2001 to 30 June 2010.

Cutler, who is based in Sydney and who specialises in litigation and dispute resolution, will take over management from 1 July 2014, also for an initial term of three years.

He previously served as partner in charge of the firm's Canberra office from 2000 to 2004, and currently has a practice focused on commercial disputes and government litigation, particularly in the areas of telecommunications and intellectual property.

Others in the running for the role were the firm's national head of litigation Brigitte Markovic and energy and projects partner Bruce Cooper, also based in Sydney.

Board chair Ross Perrett said Cutler was appointed in view of his experience and history with Clayton Utz, and his vision for the firm going forward.

"The Australian legal services market is rapidly evolving, in the face of continued global economic uncertainty," he said.

"As with all businesses, Clayton Utz must respond to the challenges and opportunities presented by our clients' changing needs and expectations. We must ensure we have the best people to assist us achieve that outcome."

Clayton Utz is one of the two remaining independent law firms among Australia's 'big six', alongside Minter Ellison.

The Sydney headquartered outfit, which has eight Australian offices and one international base in Hong Kong, has never fully ruled out the prospect of an international merger, but made clear its intentions to focus on the domestic Australian market and on remaining independent for the time being.

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