
The appointment indicates that Murdoch's son James, currently in charge of News Corp's European and Asian interests, will have to wait a little longer before taking control of the company.
The appointment of Carey as deputy chairman, president and chief operating officer marks a return to News Corporation for Carey, who spent 15 years as a senior executive at the company, before becoming chief executive of The DirecTV Group, the US satellite pay TV provider, in 2003.
Carey will replace Peter Chernin, who steps down on 1 July to pursue his own business interests.
Murdoch said: "Chase has been one of my closest advisors and friends for years and I am delighted we'll once again be working together across our businesses, as we face the challenges and great opportunities ahead."
Prior to DirecTV, Carey was co-chief operating officer of News Corporation from 1996 to 2002, as well as co-chief operating officer of the Fox Entertainment Group from 1998 until 2002.
In addition to the boards of News Corporation and Fox Entertainment Group, Carey also served on the boards of NDS, Gemstar-TV Guide, and BSkyB.