He will now replace Kevin Convey at the New York paper, with his appointment effective from January 10.
Staff were informed of the news in an internal memo.
Mr Myler was quoted in the notice as saying: "I am immensely proud and honoured to be leading one of America's great newspapers into a new era."
The paper's president and chief executive Bill Holiber added: "Colin Myler will lead our print and digital platforms into the next generation of newspaper publishing."
In the memo, chairman and publisher Mort Zuckerman thanked outgoing editor-in-chief Mr Convey, and said: "The New York Daily News is a great institution of American journalism which will only get better under the leadership of Colin."
Mr Myler, who gave evidence at the Leveson inquiry into press standards last month, has previously worked at The Sun and the Daily Mail and has edited the Sunday Mirror and Daily Mirror.
Last year, Mr Myler and the News of the World's former legal manager Tom Crone told MPs investigating the phone hacking scandal that Rupert Murdoch's son James knew about an email which proved knowledge of the practice was more widespread at the paper than News International had claimed.
Mr Murdoch denied the accusation.
According to the memo circulated to staff, the New York Daily News is the city's largest-circulation daily newspaper and its website is the 12th largest news site in the US.
The change in editors comes as the Daily News transforms into a more digital operation.