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UPDATE 1-Mexican tax prosecutor to be named new tax office chief -sources

(Adds context, background)

MEXICO CITY, Oct 7 (Reuters) - The Mexican finance ministry's tax prosecutor, Arturo Medina, will be nominated to replace the head of the tax authority (SAT) after she was chosen to be the new economy minister, two people familiar with the matter told Reuters on Friday.

Earlier, President Andres Manuel Lopez Obrador said SAT chief Raquel Buenrostro would take on the role of economy minister from Tatiana Clouthier. Clouthier unexpectedly stood down on Thursday after less than two years in the job.

Medina held senior posts in the Mexico City government under Mayor Claudia Sheinbaum and in the federal security ministry prior to being named tax prosecutor late last year.

The president's office did not reply to a request for comment on the nomination, which must be ratified by Congress.

A spokesperson for Medina said he was still tax prosecutor and had no further information for the time being. (Reporting by Dave Graham and Diego Ore Additional reporting by Daina Beth Solomon)