A former nurse and midwife who likes to fashion things out of clay has been chosen as the next Bishop of Crediton.

The Rev Dame Sarah Mullally, currently Canon Treasurer at Salisbury, will be the fourth woman bishop and the third suffragan in the Church of England when she is consecrated next month.

She was made Dame Commander of the British Empire in 2005 in recognition of her outstanding contribution to nursing and midwifery.

Mrs Mullally, who with her husband Eamonn has two children, was educated at a comprehensive school in Woking and in her nursing career held several leadership roles including director of nursing at the Chelsea and Westminster Hospital. In 1999 she was appointed as chief nursing officer in the Department of Health – the youngest person to hold the post.

An amateur potter, she was ordained in 2001 and left her NHS post to serve as a full-time priest, going on to become team rector of Sutton Team Ministry at St Nicholas' Church in Sutton, London. She is currently involved in an Anglican clergy leadership programme.

Mrs Mullally said: "Throughout my life, as both a nurse and a priest, I have experienced God's enduing love and I hope as bishop to be able to share that love with others."

Bishop of Exeter, the Right Rev Robert Atwell, said he was delighted: "This is an outstanding appointment. Sarah will enrich the life of the church in Devon enormously. She will bring to her new role the same mixture of compassion, integrity and professionalism that has characterised everything she has done and achieved, both nationally and specifically within the Church of England."