The Public Health England (PHE) will be disqualified and replaced with a new body early next month.
The new body - which will be called the National Institute for Health Protection - will be responsible for protecting the UK from pandemics, and will be created by integrating the NHS Test and Trace and Public Health England elements working on the Coronavirus.
The Telegraph reported that Health Minister Matt Hancock will announce the merger next week, with the goal of getting it ready for a possible surge in Covid-19 cases over the fall.
The decision to cancel The Public Health England comes after heavy criticism from within the government for its role in the response to the Coronavirus in the United Kingdom.
He was accused of failing to have the ability to properly track the virus and conduct tests when the outbreak began.
A senior minister said: “We want to combine science and scale in one new body so that we can do everything we can to stop the rise of the second Corona virus this fall.
"The goal of the National Institute for Health Protection will be simple: to ensure that Britain is one of the best equipped countries in the world to fight the epidemic."
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The National Institute for Health Protection will have tens of thousands of employees and will rely on the Robert Koch Institute in Germany, which has led the country's response to the Coronavirus.
Hancock is reportedly looking for someone with experience in the private sector and health policy to run the new agency, with Head of Testing and Tracing Baroness Dido Harding nominated for the top role.
The new institute will report directly to ministers in the Ministry of Health and chief medical officer, Professor Chris Whitty.
The testing and tracking call centers will be terminated starting next month and will be replaced instead by board-managed operations.
The Public Health England's work on obesity will also be handed over to local councils.
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