Control of the agency's creative accounts will now be split between Burley and HHCL's creative director and founding partner, Steve Henry, although Henry will have overall control of the department.
Burley has worked at HHCL since 1998, when he and his partner, Ian Williamson, joined from WCRS.
Henry said: "John is one of the top writers in the industry, and he is perfectly equipped to drive us into even more interesting creative areas."
Burley said: "Winning the creative account for Sky was a fantastic thing, especially after last year, which was tough. It restored our confidence and the challenge is to keep that momentum going. We're going to appoint some new teams who are young and hungry and that's really exciting.
"I joined HHCL/Red Cell because of the creative reputation of the agency, which constantly strives to do interesting and surprising campaigns. It's an optimistic and exciting time."
Burley will replace Young at the end of August, following a brief handover period. Young recently moved to Banks Hoggins O'Shea/FCB to head its creative department.
HHCL/Red Cell has also appointed Mark Dickens to the role of head of art. Dickens had been freelancing at the agency since May this year. Before that, he worked as a freelance in Amsterdam having left Leagas Delaney in 1999.
Henry added: "Mark has made a huge impact since joining us earlier this year. His appointment in this new role provides additional focus for all our creative output and he has already proved his ability many times over."
HHCL/Red Cell's creative team Jon Robb and Ester Hjellum are leaving the agency to join Publicis. The pair, who were both Campaign Faces to Watch in 2003, have worked on the Robinson's, Ambrosia and The Science Museum accounts.