Rich Silverstein, the co-chairman, said.
The move is in response to client demands that the agency have a European outlet. Hewlett-Packard and General Motors, two of the agency's biggest clients, are among those that could benefit from a better international presence from Goodby.
The agency is responsible for the "got milk?
campaign and for acclaimed work for Budweiser, E*trade and Nike.
Jeff Goodby, the co-chairman, is this year's Cannes International Advertising Festival's jury president.