Kane, who has been at the north London venue for the past three years, has been credited with turning the event space around and bringing in a host of high profile events including the recent Masters Snooker tournament.
Of her new role Kane said: "I was approached by the O2's owners AEG, who were impressed with the job I was doing at Alexandra Palace. I will be sad to leave, but I am very excited by the prospect of looking after the O2."
Kane will leave Alexandra Palace in good stead, particularly as it is set to host one of the biggest National Olympic Committee houses in the form of during the 2012 Olympics later this year.
More details to follow soon.