He takes the role of chairman with the former director of the BBC's Lifestyle Group, Seamus Geoghegan, installed as the managing director. The former programme director of Capital Radio, Jo Sandilands, will become the venture's editorial director.
Meanwhile, the managing director of Redwood, Keith Granger, replaces Potter as chief executive. Michael Baulk, the chairman and chief executive of Redwood's parent company, Abbott Mead Vickers BBDO, becomes the chairman of the Redwood group of companies.
Potter will retain an advisory role at Redwood.
Seven Publishing plans to launch its first monthly magazine title, Delicious, in the spring. The glossy title for food lovers was launched in Australia in 2001. It is currently the largest publication of its kind in the country with a circulation of close to 100,000.
Seven Publishing has obtained the licence to produce it in the UK from its Australia publisher, FPC Magazines.
Potter, who while with Redwood successfully developed titles for high-street retailers including Boots, Marks & Spencer and Safeway, said he was excited about the opportunity to return to consumer magazines.
He said: "There is no doubt Seven Publishing can bring a fresh approach to consumer publishing. Lifestyles have changed and yet some consumer titles haven't moved with the times at all. Delicious is exactly the right title to launch the company with. It embodies all the factors we want to bring to the UK."
Baulk said: "Redwood is a market leader in its field and Mike's vision and energy have played a central part in its pioneering success. He has let it be known for some time that he was looking for a challenge, so this has not come as a surprise."