Vodafone deputy CEO Vittorio Colao is tipped as a front-runner to replace Arun Sarin as the company's head later this year, says the Financial Times. Vodafone board sources reportedly believe Colao is the strongest internal candidate for the top position.

Colao leads Vodafone’s European operations, responsible for generating 80% of the firm’s revenue, and his performance is expected to be closely scrutinised when the company’s 2008 results are published later in the month.

Vodafone has not commented on how long Sarin is expected to remain in his position, but analysts predict that his rocky performance in recent years will see the company looking for a replacement to boost shareholder confidence. Sarin’s recent moves to expand Vodafone into emerging markets have been popular with shareholders, but his public and internal image has suffered in recent years due to growth that failed to meet expectations.

Despite Sarin’s recent positive moves, analysts believe that if Colao can present consistently high performance from the company’s European businesses it will put him in a prime position to replace Sarin towards the end of the year. Sarin is declining to comment on any rumours of his stepping down, although Vodafone investors are rumoured to have said that a definite move can be expected before 2009.