Ailes will run Fox Business Network, Fox television stations and 20th Century TV as well. Rumors that he was close to signing a new deal were first reported by New York's Gabriel Sherman in September.
The 72-year-old has reigned supreme at Fox News since the network's inception, making it one of the most profitable and influential wings of News Corp.'s media empire. In recent years, he has tangled with Glenn Beck and Sarah Palin, tried his best to influence Republican presidential politics and claimed to be making a "course correction" with the network. He also signed most of his top anchors, such as Bill O'Reilly, Shep Smith, Greta Van Susteren and Sean Hannity, to new contracts.
The terms of the deal aren't clear, though Sherman reported that Ailes was asking Rupert Murdoch for a raise from his current $21 million salary.
UPDATE: News Corp announced the official deal on Friday afternoon.