Stephen Carter, former communications minister, left his post in June. The surprise announcement came when he unveiled his eagerly awaited Digital Britain report into the communications sector.
Timms, who will retain his role as financial secretary, will also gain the title of Parliamentary Under-Secretary of State at the Department for Business, Innovation and Skills.
This means that in addition to his existing responsibilities as Financial Secretary at the Treasury, the Digital Britain report will be taken forward by Timms.
His Digital Britain work will also be overseen by the culture secretary Ben Bradshaw and Lord Mandelson, First Secretary of State.
Timms' role will be supported by creative industries minister, Sion Simon, who will take the lead on aspects of Carter's plan, published in June, relating to the Department for Culture, Media and Sport.
These include agreeing a deal with the BBC over the use of the digital switchover surplus to fund universal broadband rollout.
Timms' role will be crucial in the coming months as the Government looks to push a series of bills through parliament relating to Digital Britain.
These include the Digital Economy Bill, aimed at tackling piracy and providing universal broadband access.
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