Macdonald, who most recently worked for Publicis where he launched its RedLion subsidiary, takes charge of the 70-strong Amsterdam team with immediate effect.
He has been tasked with expanding Sid Lee’s presence in Europe and managing its global relationship with Absolut Vodka, which it won at the end of last year.
Macdonald, a Brit, has previously also worked at Ogilvy and Grey Group.
JF Bouchard, the global chief executive of Sid Lee, said: "After five years of presence in Amsterdam, we felt it was time to appoint a global leader to solidify our presence in Europe and take the atelier to another level."
Macdonald added: "It is a true honour and a real privilege to have been chosen to lead such an established and celebrated team of world-class artisans."