The man credited with masterminding Barack Obama's back-to-back presidential victories will play a key role in Ed Miliband's General Election campaign.
David Axelrod's appointment has been described by the Labour party as "seriously bad news for the Conservatives".
Mr Miliband said: "It's excellent news that David has agreed to help One Nation Labour win the next election and build our campaign to change Britain so hard-working people are better off.
"He will be a huge asset to our campaign as we work to show the British people how we can change our country for the better."
Following the announcement, Mr Axelrod said: "I've had several conversations with Ed Miliband over the course of the last year in which I have been struck by the power of his ideas, the strength of his vision and the focus he brings to solving the fundamental challenge facing Britain.
"We can't just have prosperity hoarded by a few where people at the top are getting wealthier and wealthier but people in the middle are getting squeezed."
He will work alongside Douglas Alexander - Labour's shadow foreign secretary and the chair of Labour's general election strategy
Mr Axelrod will arrive in London next month for two days of strategy meetings with Mr Miliband, deputy leader Harriet Harman, and other senior shadow cabinet members.
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