Dr PELL, the current Archbishop of Melbourne, will become the eight Archbishop of Sydney after an announcement by Pope JOHN PAUL II last night. He replaces Cardinal EDWARD CLANCY, 77, who is retiring after 18 years in the job. 

No stranger to controversy, Dr PELL, 59, is an outspoken defender of traditional Catholic values. In the past, he has denied holy communion to gay and lesbian Catholics, and described homosexuality as a greater health hazard than smoking.

 MICHAEL KELLY, spokesman for Catholic gay group Rainbow Sash, says Dr PELL'S appointment will cause grave concern among moderate and progressive clergy in Sydney. 

Meanwhile, speculation is growing in Melbourne's Catholic community about Dr PELL'S likely replacement. Among the contenders is Melbourne's vicar-general, Bishop DENIS HART. 

Dr PELL is scheduled to appear at a press conference with Cardinal CLANCY in Sydney this afternoon.