Jay Carney, former Washington bureau chief of Time magazine and currently the communication director for US Vice-President Joe Biden, would replace Robert Gibbs as White House Press Secretary.
The announcement in this regard was made by Bill Daley, the new Chief of Staff of President Barack Obama, in an e-mail communication to the White House staff on Thursday evening.
The E-mail also announced a number of changes in the White House staff structure, which is aimed towards giving a new thrust to the Obama administration as it crossed the half-mark of its first four-year term.
"I believe these decisions will bring greater clarity to our structure and roles and will enhance coordination and collaboration among us. I am excited about these changes and I look forward to working with all of you -- those in existing roles as well as those filling new roles -- in the weeks and months ahead. We have a great team," Daley said.
He also named two new deputy chiefs of staff -- Nancy-Ann DeParle, director of the Office of Health Reform, and Alyssa Mastromonaco, White House director of scheduling.
Outgoing White House Press Secretary Gibbs, The Washington Post reported, is now expected to open his own consulting operation and appear on television as a prominent surrogate for the President. He would also be playing a key role in the re-election bid of Obama in 2012.
Gibbs, who had accompanied the US President to his India visit in November, was involved in a tiff with Indian officials over the media coverage of Obama's meeting with Prime Minister Manmohan Singh.
Gibbs, on November 8, had put his foot between the doors so that security officials could not close them without letting the White House travel pool to enter the room at New Delhi's Hyderabad House, where the two leaders were holding the meeting.
Later, Obama said Gibbs' fury with Indian security officials at the Hyderabad House was for a "good cause".
"I will say that his foot is still bruised," Obama had said laughingly.
Carney, who had a meeting with Obama, over the weekend, was selected over several other candidates, including Deputy Press Secretaries Josh Earnest and Bill Burton and deputy communications director Jen Psaki; and several outside advisers, The New York Times said.
The 45-year-old former Time journalist is well known in the press circle and has a good relationship with the Washington press corps.
Carney joined Time in 1988 and became its reporter on political affairs. He also worked as its Moscow correspondent for three years and was among the few correspondents who travelled with the then US President George W Bush on Air Force One on 9/11.