Arts Council England (ACE) has announced significant changes to its organisational structure, following an independent review.

Five new area councils will replace the nine regional councils; London, South West, South East, Midlands and North.

Membership of the National Council will also drop from 17 to 14.

The changes will come in effect from July 2013.

ACE chair Sir Peter Bazalgette said the restructuring gives the organisation a chance to reflect on its non-executive governance.

"We must show leadership around digital opportunities, encouraging cultural entrepreneurialism and new parts of our remit such as our responsibility for regional museums," he said.

Chairs for the new area councils will be Veronica Wadley (London), Sheila Healy (South West), Jon Cook (South East), Peter Philips (Midlands) and Joe Docherty (North).

The review was undertaken by David Norgrove, chair of Pensions First, the Family Justice Board, the Low Pay Commission and Amnesty International. He was also formerly a deputy chair of the British Museum and private secretary to Margaret Thatcher.