The former Microsoft executive Erik Huggers is tipped to be the BBC's new director of future media and technology, replacing Ashley Highfield, who is leaving to head a commercial web TV venture.

Huggers joined the BBC as the controller for future media and technology in May last year. Highfield, who has been at the corporation since 2000, will join Project Kangaroo, which is backed by the BBC, ITV and Channel 4. His departure was announced yesterday.

Huggers worked at Microsoft for nine years, setting up MSN in the Netherlands and Belgium, heading business development for Windows Media technologies and overseeing strategy for the firm's entertainment business.

Highfield's departure is seen as a logical step by those at the BBC who observed that "there was nowhere else he could go" at the corporation.

Project Kangaroo is seen as a powerful proposition that will be able to commercially exploit the potential of web TV, whereas the BBC's iPlayer service, which Highfield oversaw for four years, is limited to a public-service remit.

A senior BBC source said that although "Huggers is the one to beat", the BBC Vision controller of multiplatform and portfolio, Simon Nelson, was also a strong contender.

"He has a good relationship with [Vision director] Jana Bennett and [outgoing audio and music director] Jenny Abramsky and that is not a bad start," said the source. "Simon runs radio and music like clockwork - he is a great leader who understands the business and understands what needs to be done."

Richard Deverell, the controller of BBC children's programmes, is another likely internal candidate, as well as Nic Newman, the controller of journalism in the future media and technology department, and Tony Ageh, the controller of internet.