Investment funds CVC, Global Infrastructure Partners (GIP) and IFM Global Infrastructure, which together control about 55% of Naturgy, proposed Ignacio Gutierrez-Orrantia for the job, the newspaper said.

Gutierrez-Orrantia is Citigroup's co-head of banking, capital markets and advisory for Europe, Middle East and Africa.

The company intends to separate the jobs of CEO and chairman of the board, both currently held by Francisco Reynes, the newspaper said.

Naturgy, Citi and CVC declined to comment, while GIP and IFM did not immediately respond to requests for comment.

(Reporting by Inti Landauro and Andres Gonzalez; editing by Jason Neely)