The conservative firebrand has signed a multi-year deal to serve as a Fox News contributor, the cable channel's executive vice president for programing, Bill Shine, said in a statement.
The move will help give Palin a large audience for her views as she mulls whether to run for president in 2012.
It gives her more exposure for as long as she wants it, said University of Virginia political analyst Larry Sabato. She can always resign the position to run for office.
Palin was John McCain's vice presidential running mate in the 2008 campaign, and chronicled her story in a best-selling book, Going Rogue.
The former Alaska governor generates enthusiasm among conservative loyalists while liberals and environmentalists routinely denounce her.
She has not ruled out running for president in 2012, saying she is concentrating on helping Republicans win victories in 2010 congressional elections.
Governor Palin has captivated everyone on both sides of the political spectrum and we are excited to add her dynamic voice to the Fox News lineup, Shine said.
Another 2008 Republican candidate, former Arkansas Governor Mike Huckabee, hosts a program on Fox News that is also giving him a high-profile platform. He has not ruled out a 2012 run either.
(Reporting by Tabassum Zakaria and Steve Holland, Editing by Sandra Maler)