Lund will replace Alan Bishop, who resigned in October to become the chief executive of the Southbank Centre.
Lund, who is currently also chairman of the Advertising Association, founded DLKW alongside Greg Delaney, Tom Knox and Richard Warren, and sold the agency to Creston in early 2005. A three-year earnout deal, which tied the partners to the agency, matured in March 2008.
DLKW launched in 1999 as the new name for Delaney Fletcher Bozell, after senior managers at the agency rejected a proposed merger with FCB.
Liam Byrne, Minister for the Cabinet Office, said: "I am delighted to announce the appointment of Mark Lund as chief executive of COI. COI has a key role to play in driving forward innovations in the way government communicates, such as using new insights on behaviour change to maximise our reach and punch.
"This work is more vital than ever during the global economic downturn because people and businesses across Britain need to know what the Government is doing to fight back against the downturn, what help is available and where to find it."
Lund added: It is a great privilege to be appointed chief executive of COI. I believe very strongly in the importance of the COI's work and have always found the challenges involved in developing its campaigns fascinating. I look forward to working closely with Peter Buchanan, COI’s deputy chief executive, the management board and all COI’s hardworking and talented staff in developing COI's capability.