James Murdoch is moving from London to New York to become deputy chief operating officer of News Corporation.

He will report to Chase Carey, who is number two at the media conglomerate run by his father, Rupert.

Murdoch Jr will also become chairman and chief executive of News Corp's international businesses, retaining his responsibilities for Europe and Asia.

The move confirms that the youngest of Rupert Murdoch's three children from his second marriage is being lined up as an eventual replacement for the News Corp founder, who is the company's chairman and chief executive.

Murdoch Jr has been based in London since November 2003, first as chief executive of BSkyB, the pay-TV company in which News Corp is the largest shareholder and of which it is attempting to take full control. In December 2007 he was promoted to BSkyB chairman and chief executive of News Corp in Europe and Asia.

In this role he oversaw businesses including the Times, Sunday Times, Sun and News of the World publisher News International, and News Corp's satellite TV businesses in Germany, Italy and Asia.

The deputy chief operating officer job is the same post his older brother Lachlan occupied until he resigned in July 2005.

In a statement, News Corp said James will "work closely" with Rupert Murdoch in what it described as a "newly created role".

Murdoch will focus on News Corp's international assets, developing strategies that "strengthen and further evolve businesses", the company said.

Murdoch joined the company in 1996 to run a portfolio of digital businesses before moving to Hong Kong in 2000 to run its Asian TV business Star, which was losing money.

He has been executive chairman of News International, News Corp's UK newspaper arm, since 2007, when Les Hinton moved to the US to take charge of the Wall Street Journal.

He is also a non-executive director of pharmaceutical giant GlaxoSmithKline and auction house Sotheby's.

Murdoch said: "I feel extremely fortunate to continue to support News Corporation's international growth and also be given the chance to contribute to important initiatives across the company. Most of all, I am delighted to work even more closely with Chase Carey, whose extraordinary leadership is felt in every part of the business."

Carey, News Corp's deputy chairman, president and chief operating officer, added: "As we become increasingly global and consumer focused, we believe there are real opportunities to add new dimensions to our core businesses. We are confident that James' deep knowledge of international markets, his proven leadership, and his passionate focus on building consumer relationships make him the ideal person to help us realise these opportunities across all our companies."

• To contact the MediaGuardian news desk email editor@mediatheguardian.com or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly "for publication".

• To get the latest media news to your desktop or mobile, follow MediaGuardian on Twitter and Facebook