Leading US Republican Paul Wolfowitz would be a "pleasant surprise" as head of the World Bank, said Jack Staw.
The UK foreign secretary praised Mr Wolfowitz's record as a public servant.
George Bush's decision to appoint his deputy defence secretary was described by campaign group the World Development Movement as "truly terrifying".
Mr Wolfowitz was a leading hawk over the Iraq war but Mr Straw said: "The balance sheet is much more balanced than some of his critics suggest."
Success in Indonesia?
The US president said Mr Wolfowitz was a "compassionate, decent man".
And Mr Straw said the UK would be happy to work with him if the nomination was approved.
"My own belief is that if Paul Wolfowitz is confirmed by the board of governors of the World Bank that people will be pleasantly surprised by this man."
Mr Wolfowitz was widely seen as the best US ambassador to Indonesia, he added.
Mr Straw spoke after EU finance ministers said they had "concerns" about the potential appointment of Mr Wolfowitz as president of the World Bank.
Luxembourg Economics Minister Jeannot Krecke said that there is "some concern about the way Mr Wolfowitz intends to handle the policy of the World Bank."
German Finance Minister Hans Eichel said that Mr Wolfowitz is a "high level candidate, but there needs to be more discussions before" his election to the post of the development agency.
The finance ministers want him to come to Brussels before his appointment is confirmed at the end of the month, to answer questions about his position on several development issues, such as debt relief.
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