Royal Mail will be sold to a Czech billionaire in a £3.6bn deal, taking the postal service out of British ownership for the first time in 500 years.

Ministers have given the green light to the sale of Royal Mail to Daniel Kretinsky, the tycoon known as the “Czech sphinx”.

As part of the deal, the Government will retain a “golden share” in the company, giving it control over any major governance changes.

Staff will also be handed 10pc of any dividends paid out to Mr Kretinsky, while postal workers will be granted a greater say in how the company is run through a new workers group that will meet with bosses once a month.