The Australian comedian will continue the channel's tradition of providing viewers with a different festive speech to the Queen's official message.
Hills's appointment follows his successful turn as host of The Last Leg, a humorous take on the London Paralympic games.
"This year's summer of sport culminated in the greatest Paralympic Games ever," a Channel 4 statement reads.
"Comedian Adam Hills contributed to this rewriting of perceptions with The Last Leg, his critically-acclaimed programme as part of Channel 4's ground-breaking Paralympics coverage.
"Now Adam presents Channel 4's alternative to the Queen's Christmas Day broadcast."
However, the Alternative Christmas Message will not air at the same time of the Queen's speech. It will be broadcast at 4.20pm on Christmas Day.
Adam Hills will also host a Christmas special of The Last Leg ahead of its second series in 2013.
Marge Simpson, Jamie Oliver and Sharon Osbourne have been among past stars to present the channel's speech.
Channel 4's alternative message has also been fronted by controversial hosts in the past, including Mahmoud Ahmadinejad and Ali G.