Carey will replace the current chairman Markus Tellenbach.
News Corp owns a 45.4 per cent stake in the German broadcaster which has a 2.47 million subscriber base.
The move by News Corp comes after Deutsche Telekom's announcement of its intention to become the biggest pay TV provider in the country within three years. It is also understood to be keen to triple the number of customers for its internet-based Entertain TV service from 1 million to 3 million by 2012.
Sky Deutschland has failed to make much headway in Germany where pay-TV is dominated by regional cable companies.
Analysts view this move from News Corp as a strategy to put a very senior person at the helm to fight Deutsche Telekom.