McHugh will take up the role of chief creative officer and managing partner at Carmichael Lynch, the Minneapolis-based agency that works for clients including Harley-Davidson, Porsche and North Western Airlines.
Creative directors Richard Bullock and Andy Fackrell, along with associated creative director Dean Maryon, will continue to run the 180 creative department.
McHugh joined 180 from Fallon in Minneapolis three years ago. He has worked on award-winning ad campaigns such as "Impossible is nothing" for Adidas, which won gold at Cannes this year, and the Jonny Wilkinson/David Beckham spot for the same client, which won bronze.
Alex Melvin, founding partner of 180, said: "Peter joined as executive creative director with a brief to build a world-class creative department. He has delivered that. We now have a pool of creative talent at 180 that has been lighting up awards shows over the past year. We have Peter to thank for that and wish him well on his return to the US."
McHugh said: "180 is a unique place, full of passionate, talented people. It's been a true experience working here. It's been an unforgettable three years, I know I'm going to miss it."
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .