In an interview, Sir Peter Bonfield told the paper BT would also decide by the end of this year whether it would float its other subsidiaries, such as its mobile phone business.
Regarding speculation that BT might be interested in buying the UK's largest internet service provider Freeserve, Sir Peter said the company was not attractive "at the price they are at right now."
There has been speculation that BT might be interested in the company since Freeserve announced earlier this week that acquisition talks with Germany's T-Online had broken down.
BT has not had much luck in its previous acquisition attempts.
It failed in its bid to buy MCI Communications, and preliminary tie-up talks with Spain's Telefonica broke down.
BT risks being left behind in the rapidly consolidating world of telecoms by its rivals, like Deutsche Telekom and France Telecom, and by mobile phone operator Vodafone.
New business model
The company is also in the midst of setting up a new business model, which will start operating from 1 July.
BT is being split into four different international units - corporate internet services, consumer internet services, mobile phone services and Yellow Pages.
The idea is to have the company operate along business lines as oppose to its current geographic operating structure.
"BT is a very large company that's relatively difficult to manage on a geographic basis," Sir Peter said.
The plan "gives us a more focused management task," he said.
The new heads of the individual units will be announced on 1 July.
Sir Peter also said the company was on track to cut 3,000 middle management positions this year as part of BT's restructuring plan.
BT announced the plan in February after revealing a 24% fall in profits.
Mr Bonfield said that 2,000 jobs had already gone, and 1,000 more would follow by the end of the year.