Time Warner Inc's AOL said on Thursday it has appointed former Google executive Tim Armstrong as chairman and chief executive to determine the best structure for the Internet unit which its parent is considering spinning off.

Armstrong is a Google senior vice president who oversaw its Americas operations and is best known for his work in developing Google's online advertising business. His name was widely touted last year as a CEO candidate for Yahoo Inc after former Yahoo CEO Jerry Yang stepped down.

Tim is the right executive to move AOL into the next phase of its evolution, said Time Warner Chief Executive Jeff Bewkes in a statement.

Time Warner has focused on developing AOL's advertising business in recent years but Armstrong's remit will be on getting the business ready for a complete spin-off from Time Warner as a standalone business or merged with a partner like Yahoo.

(Reporting by Yinka Adegoke; Editing by Bernard Orr)