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"It's a civil servant's cat and does not belong to the Camerons – he will be staying," a Cabinet Office spokeswoman said.
Larry, who was said to have a "strong predatory drive," was brought in to Downing Street from London's Battersea Cats and Dogs Home by Cameron in 2011 after a large black rat was seen near the Cabinet Office on a live television broadcast.
Cameron said he was "delighted to welcome Larry to his new home" and said he would be "a great addition to Downing Street and will charm our many visitors."
Larry became the Cabinet's first chief mouser since Humphrey the cat retired in 1997, following a tradition of rat-catching cats that began in the 1920s with a feline known as Rufus of England.
While Larry was able to keep his job, his unofficial Twitter account expressed some nervous feelings about meeting his new owner.
"Does anyone know a good cat groomer available tomorrow? I need to make a good impression on someone on Wednesday..." the post said.