Huggers, who is currently group controller of the division, starts his new role on August 1 and will join the BBC executive board at this time.
He will be responsible for the BBC's output on the internet, interactive TV, mobile, broadband, including the BBC iPlayer and other emerging platforms.
Huggers will also be responsible for the BBC's enterprise and broadcast technology strategy and delivery.
Mark Thompson, BBC director-general, said: "Erik has been a very strong group controller, FM&T for the last year. He has shown tremendous commitment championing the iPlayer amongst many other projects.
"I look forward to him bringing his drive and determination to this new role, helping ensure the BBC is fit for the digital future."
Huggers joined the BBC last year from Microsoft Corporation, where he worked across a wide variety of digital media initiatives.
He said: "It is a tremendous privilege to be asked to lead such a talented and dynamic team in Future Media & Technology.
"Since I joined the corporation, I have been struck by the energy and skill that BBC staff are devoting to make sure the corporation meets the challenges of the on-demand world.
"I now look forward to, along with my team, collaborating with colleagues across the BBC to ensure we respond to audience demands in providing exciting and innovative new ways of delivering the BBC's content across a range of media."
Highfield started as chief executive of Kangaroo on July 1. He took over from Lesley Mackenzie who left to join web TV business as chief executive.
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