In this newly-created role Murdoch, son of News Corp chairman Rupert who recently turned 80, will retain direct responsibility for the company’s operations in Europe and Asia.
In a statement, the company said: "He will bring his significant operational expertise to bear across News Corporation's broad asset portfolio, collaborating with senior leaders to develop and execute strategies and plans that strengthen and further evolve businesses, extend brands, and build new franchises."
Murdoch junior has been chairman and chief executive, Europe and Asia for News Corporation as well as executive chairman of its newspaper arm News International, since 2007. It is understood there will be no changes to the reporting structure in the UK as a direct result of his move.
In these roles, he has been responsible for the strategic and operational development of the Company’s television, newspaper and related digital assets in Europe, Asia and the Middle East.
In the UK News Corp owns the News of the World, The Times, Sunday Times and The Sun and has a 39.1% shareholding in cable and satellite broadcaster BSkyB, a company it is expected to make a fresh bid to take full control of.
Murdoch junior is currently non-executive chairman of BSkyB, a position he is retaining despite his move to New York.
While keeping control of the UK operations, he will relocate to New York where he will continue to report to News Corporation deputy chairman, president and chief operating officer, Chase Carey and "work closely" with Rupert Murdoch, chairman and chief executive officer of News Corporation.
Carey said: "James has demonstrated in an array of roles that he is a shrewd and decisive operator who can deftly navigate complex issues to transform businesses. He has equally shown a unique understanding of the emerging technologies and the digital forces that are reshaping our industry.
"We are confident that James’ deep knowledge of international markets, his proven leadership, and his passionate focus on building consumer relationships make him the ideal person to help us realize these opportunities across all our companies."
James Murdoch said: "Around the world, the company’s operations are increasingly fit and focused on priorities that can over time produce very significant returns.
"I feel extremely fortunate to continue to support News Corporation’s international growth and also be given the chance to contribute to important initiatives across the company. Most of all, I am delighted to work even more closely with Chase Carey, whose extraordinary leadership is felt in every part of the business."
Murdoch first joined News Corporation in 1996 as an executive vice president based in New York responsible for a number of digital media ventures and corporate development projects.
He went on to head News Corporation’s Asian television group Star and then from 2003 to 2007 he served as BSkyB’s chief executive officer.