Myler, who became a key figure in the UK phone hacking scandal, will become editor-in-chief of New York's biggest-selling tabloid newspaper, which is a key rival to Rupert Murdoch's New York Post.
Relations between Myler and the Murdoch empire have been strained ever since the closure of the News of the World in July.
Last year, Myler openly contradicted News Corporation executive James Murdoch over evidence he gave to a parliamentary inquiry into phone hacking at the paper.
He is expected to relish the chance to take on the Murdoch papers at the New York Daily News.
Martin Dunn, a former editor of the Daily News, told The Guardian that Myler was "obviously very upset at what transpired at News of the World".
He added: "This will be a great opportunity for him to take his journalistic skills into battle with the Murdoch family in Rupert's own backyard."
Myler was brought back to the UK from the US by Rupert Murdoch in 2007 to steady the ship at the News of the World following the jailing of royal reporter Clive Goodman for hacking the phones of members of the royal household.
At the time, he replaced Andy Coulson, who had joined the Conservative Party as David Cameron's communications chief, only to resign early last year after more revelations about hacking at the paper started emerging.
At the Leveson inquiry into press ethics last month, Myler said that it was an uncomfortable experience taking the helm at the News of the World following the previous conduct of some of its journalists.
"I felt that there could have been bombs under the newsroom floor and I didn't know where they were and I didn't know when they were going to go off," he said.
Myler joins NY Daily News as a replacement for Kevin Convey, who leaves the paper after only a year and a half as editor-in-chief.