THE Editor of the Daily Record, Terry Quinn, is to leave the paper next month. He will be replaced by the editor of the Scotsman, Martin Clarke, writes Cameron Simpson.

A Mirror Group spokesman declined to comment on speculation that Mr Quinn, who joined the paper in October 1994, had been dismissed or that he had been given a pay-off in excess of #300,000. He said Mr Quinn was leaving after a ''mutual understanding'' had been reached.

However, it is no secret that the group executives have recently become unhappy with Mr Quinn's stewardship of the paper whose circulation has fallen to below 700,000 from a high of 780,000.

The latest upheaval at Anderston Quay follows the clash in January which saw managing director Liam Kane resign after he failed to persuade group chief executive David Montgomery to grant greater auto-nomy to the group's Scottish operation which would have seen Mr Quinn replaced by former Herald editor George McKechnie.

At the time it was said Mr Kane was deeply worried that both titles were now regarded by London as mere branch operations - regardless of their national status and special needs in the wake of devolution.

Mirror Group hopes to quash any such perceptions with yesterday's appointment. Mr Clarke has been editor of the Scotsman for little over a year. The 33 year old from Kent had previously been editor of the Scottish edition of the Daily Mail.

A spokesman said Mr Clarke would become editor of the Record as well as editor-in-chief of the Record and Sunday Mail. Mr Jim Cassidy, editor of the Sunday Mail is understood to be considering his position. The spokesman indicated the new editor would refocus the Record more heavily on politics and business and try to attract a younger readership.

Meanwhile, Mirror Group finance director John Allwood is moving to take responsibility for the group's regional and Scottish newspaper divisions. He will replace Chris Oakley who joined the group during the takeover of his Midland Independent Newspapers and is now leaving the company at the end of the month to become chief executive of YPG Group Ltd.

Mr Allwood has presided over the group's financial reconstruction since 1992.