Parry announced he would be leaving LFC in February, after months of speculation about his relationship with co-owner Tom Hicks.

Their relationship was strained when Hicks publicly called for him to resign last year.

Prior to his job at the club he spent the previous six years as chief executive of the Premier League.

Minister for Sport Gerry Sutcliffe said: “I am delighted that Rick Parry has agreed to lead this vitally important work.

“His expertise in the nation’s most high-profile sport, along with that of the other panel members, will give this project the impetus it needs to tackle sports betting corruption head-on.

“We cannot be complacent and need to act now to prevent this becoming a real threat to the integrity of sport.

“There are some complex issues involved and this is by no means an easy task, but I have great confidence in the panel and I look forward to hearing the recommendations.”

Gambling Commission chairman Brian Pomeroy said: “I want to welcome Rick Parry and the other members of the expert panel and look forward to sharing with them the benefit of our expertise on betting integrity in the British market. I support this initiative strongly which brings together those whose work keeps British sport free of corruption.

“By acting in concert against the threat to integrity, the betting industry, sports bodies, players and their representatives, police forces, the Gambling Commission and others can achieve much more than any of us alone.”

Huge sums can be bet on the result of sporting events, particularly in the Far East betting markets.

Allegations of corruption have tainted several sports in recent years, particularly cricket, where late South Africa cricket captain Hansie Cronje was caught taking bribes to throw matches.