Burke has been without an agency since January 2009, after leaving Tequila to take a break from the industry.
At Balloon Dog, Burke will be responsible for leading the agency's creative team, working across a client list that includes Aviva, Barclays, Pret A Manger and the RAC.
Burke had spent two-and-a-half years at Tequila, creating award-winning work for brands such as the Army and Prudential.
His arrival at Balloon Dog coincides with a number of new digital appointments at the agency, including Matt Isherwood, who joins from Affinity as a digital manager, and Giles Luckett, who joins as a digital channel planner from Soup.
Chris Murphy, the chairman of Balloon Dog, said: "We are thrilled about welcoming Cordell to the team."