Diplomat appointed new UQ chancellor

Department of Foreign Affairs and Trade secretary Peter Varghese will step down next year to take over as chancellor at the University of Queensland.

The university's senate voted to appoint Mr Varghese to the position on Monday night.

Prime Minister Malcolm Turnbull and Mr Varghese's boss Julie Bishop, the foreign affairs minister, have praised his diplomatic service.

"Mr Varghese is one of Australia's most esteemed public servants and diplomats," Ms Bishop said in a statement.

"(He) has been a constant source of sage advice during a time of significant international challenges."

Mr Varghese has held his current role since 2012 and has served as Australia's high commissioner to both India and Malaysia.

He will take over the role of chancellor from John Story in July.