European Union leaders agreed on Tuesday to name Frenchwoman Christine Lagarde as the new head of the European Central Bank and sealed a deal on filling the other four top jobs in the bloc after tortuous marathon talks exposed their deepening divisions.

"The European Council has agreed on the future leadership of the EU institutions," said Donald Tusk, chairman of the EU leaders' talks.

German Defence Minister Ursula von der Leyen, an ally of Chancellor Angela Merkel, would become head of the European Commission, the EU executive, under the deal reached in Brussels, which must still be endorsed by the European Parliament.

Belgium's liberal caretaker prime minister, Charles Michel, would replace Tusk as the next chairman of EU leaders' summits and be tasked with building compromises between the often fractious 28 member states.

Spain's acting foreign minister, the socialist Josep Borrell, would be the EU's new top diplomat in Brussels, Tusk said.

These four people would help lead the EU's policies in the next five years on everything from climate to migration to trade.

The fifth prominent EU role up for grabs is the president of the European Parliament. Lawmakers are due to choose that person in Strasbourg on Wednesday.