The move comes amid reports that new Yahoo CEO Carol Bartz is preparing to announce a major management reorganization this week. The changes are expected to encompass the media unit where Khemlani worked.
In his new post, he will advise Hearst CEO Frank Bennack on digital operations across the media company's divisions spanning newspapers, magazines, broadcast and interactive.
"The creation of this new position is designed to accelerate the progress through greater cooperation and synergy across divisional lines," said Bennack in a statement Monday.
In the same announcement, Khemlani said: "We are witnessing the reemergence of content and media driving value in the new world and Hearst is uniquely positioned to realize that value across multiple digital platforms and distribution points."
He will relocate to New York from California to take the new job. His departure from Yahoo was first reported in The Wall Street Journal's D: All Things Digital.--Mark Walsh