The decision was taken at a board meeting held earlier in the day, Infosys said in a statement, adding the appointment will be with effect from June 1, 2013.
Veteran banker K V Kamath would step down from his position as Chairman of the Board and take up the role of Lead Independent Director, it added.
"The Board has taken this step keeping in mind the challenges that the technology industry and the company faces and in the interest of all stakeholders, particularly shareholders large and small, who have asked for strengthening of the executive leadership during this challenging time," Kamath said.
Murthy's entrepreneurial and leadership record and the long experience he has had as a technology pioneer makes him eminently qualified to lead the company and provide strategic direction at this point in time, he added.
S Gopalakrishnan, who was serving as the Executive Chairman, would be re-designated Executive Vice Chairman and would primarily focus on key client relationships and broader industry issues, the statement said. S D Shibulal would continue to be the Managing Director and CEO of the company, it said.
In August 2011, Kamath was appointed Chairman, succeeding Murthy, who was made the Chairman Emeritus post his retirement. Also, the then CEO and MD S Gopalakrishnan (Kris) was elevated as the executive co-chairman, while COO S D Shibulal filled in Kris' position.
The re-shuffle also marks the entry of the next generation of Infosys founder with Murthy's son, Rohan, joining the over USD 7 billion firm as his father's executive assistant.