Lord Grabiner has been appointed to chair News International's Management and Standards Committee.
The Jewish QC, 66, will oversee the investigations into behaviour at News International companies. The creation of the committee follows the scandal over alleged phone hacking at UK newspapers owned by Rupert Murdoch.
Lord Grabiner and the committee will report to the directors of the News Corp board. Director Joel Klein said he was pleased "such an eminent person" had agreed to lead the committee.
"He will bring his undoubted experience and intellect to this very important role," he said.
"His appointment clearly demonstrates that we are serious about putting things right that have gone wrong in the past."
Last year Lord Grabiner represented the owners of Liverpool Football Club in the dispute over the sale of the club.
The LSE-educated barrister, who was called to the bar in 1968, was made a life peer in 1999. He has served as the chair of the JC Trust since 2008.
He has been involved in a number of Jewish community organisations, including the Jewish Association of Business Ethics and the British Friends of Hebrew University. In 1998 he was part of a committee tasked with planning for the future of Britain's Jewish student population.