He will take overall responsibility for the UK office having joined the agency in 2011 and then taking on a wider remit in February following the departure of Chris Harris, the president and chief operating officer of Cheil Europe.
Pye, a former Ogilvy & Mather business director, will report to S J Kimm, the president and head of Europe at Cheil.
Kimm said: "Matt’s promotion is well deserved. Since he joined in 2011, he has been instrumental in the transformation of Cheil UK into a multi-client, multi-award winning agency.
"He has been pivotal in pulling together an outstandingly talented and experienced team, and in growing our business both through existing Samsung business, as well as through new clients.
"We’re looking forward to seeing the UK office continue to thrive under Matt’s leadership."
Pye’s promotion follows the recent appointment of Andy Pearcey as the director of brand partnerships and activation, and Chris Chalk, as the president, chief strategy officer, for Europe in May.
Pye added: "There’s no question that our strategy of recruiting the best talent to deliver pioneering, commercially driven solutions for our clients is proving successful – making this an exciting time to fully take the reins at Cheil UK."