EXCLUSIVE & UPDATED: Sources tell me that outcast AOL CEO Jon Miller has agreed to join News Corp in a newly created role as CEO, Digital Media. He will report to Rupert Murdoch and be based in NYC and in charge of Internet and mobile businesses in a global role driving digital strategy across all News Corp business. This is a really big job, I’m told, because he will collaborate with the heads of the other News Corp businesses. Post-AOL, Miller became one of the founding partners at the VC firm Velocity. But his former employer Time Warner had a contractual hold on him until the end of this month. The digital media veteran served from 2002 to 2006 as Chairman/CEO of AOL. He was brought in to create a new business model so he restructured AOL’s core business lines, and focused the company on online advertising (including the 2004 acquisition of Advertising.com). Previously, Jon was President/CEO of USA Information and Services, now IACI and Expedia (the company split in two in 2005), and, before that, Managing Director of Nickelodeon International, a unit of Viacom’s MTV Networks.

Meanwhile, Peter Levinsohn, who has been President of News Corp’s Fox Interactive Media (FIM) since 2006 will return to the studio with a promotion “in a big job” under chairmen Jim Gianopulos and Tom Rothman. Levinsohn had been President of Digital Media for the Fox Entertainment Group and negotiated deals to spread Fox content across available digital platforms.

And here’s the answer to a trivia question: Miller was partners in Velocity with Ross Levinsohn, the former head of FIM who lost his job to his cousin Peter.