Nicky Morgan is also a predominant advocate of a so-called "soft Brexit". She beat arch-Brexiteer Jacob Rees-Mogg with 290 votes against 226.
She said on Twitter on Wednesday evening, “Delighted and honoured to be elected by my fellow MPs as chair of the House of Commons Select Committee. Lots to do now.”
The committee said that Morgan will formally take up the position of chair when the remaining members of the committee have been appointed by the House of Commons.
The election follows the resignation of Andrew Tyrie as chair in April this year. He had been chairing the committee since July 2015.
The MP served as education secretary and minister for women and equalities from 2014 to 2016 and served as an assistant whip in the coalition government until her appointment as economic secretary to the Treasury in 2013.
She also worked as financial secretary to the Treasury and minister for women. She was elected Conservative MP for Loughborough in 2010.
Meanwhile, the Labour MP Rachel Reeves was appointed the chair of the Business, Energy and Industrial Strategy (BEIS) Committee and Clive Betts was voted the new chair of Communities and Local Government.
The Labour MP Hilary Benn was re-elected as the chair of the Exiting the EU Committee. He was the sole nomination for the position.
Benn said, "It is an honour to have been re-elected as chair of the Exiting the European Union select committee. As the government negotiates our withdrawal from the EU, the committee will have a very important part to play in scrutinising both the negotiations on an agreement and the legislation that the government will be bringing before Parliament.
“I look forward to working with all the members of the committee in building a consensus on what our new relationship with Europe should look like. Our work programme will be agreed in the coming weeks once other members have been elected and we have met to discuss our plans.”
Benn said its priorities will be discussing the future of the UK’s trading relationship with the EU, the continuation of access to the single market, how to balance immigration control with the needs of UK businesses and future cooperation on foreign, security and defence policy.
Meg Hillier and Frank Field were also re-elected as chairs of the Public Accounts Committee and of the Work and Pensions Committee respectively.