Suggs will continue to work for the station, presenting his daytime show 'Afternoon Tea with Suggs', which is proving popular with listeners.
The 'Party Classics' show features popular hits from the 1980s – the period when Spandau Ballet made their name as one of the most successful pop bands, with hits like 'Gold', 'Through the Barricades' and 'Only when you Leave'.
The band split in 1989, since which Hadley has released solo albums, toured frequently, published an autobiography called 'To Cut A Long Story Short' and appeared on 'Reborn in the USA', which ran on ITV in 2003. Earlier this year, he had a three-month stint in the West End musical 'Chicago', in the role of lawyer Billy Flynn.
The signing comes as Virgin Radio prepares for life as an independently listed company, following a decision by owner Scottish Media Group to float it and focus on television.
Virgin's other DJs include Al Murray, 'The Pub Landlord', famous for his live shows and appearances on ITV; and Christian O'Connell, as the breakfast show host.
Paul Jackson, chief executive of Virgin Radio, said: "Tony is a top-drawer signing for us and signals our ambition as we pursue a clear and focused strategy ahead of IPO. He is an absolute party legend with the star appeal and infectious personality that will be a hit with our listeners and bring new audiences to the station."
Hadley's first show will be on Friday August 3, between 6pm and 10pm.