We are very happy to have a talent like John Galliano, Dior spokesman Bernard Danillon told Reuters.
Galliano, 36, whose appointment had been widely predicted within the industry, is to leave his position at Givenchy to replace Italys Gianfranco Ferre, who presented his final collection for Christian Dior last Tuesday.
Ferre had worked for the house since 1989.
Galliano switches to Dior just one year after moving to Givenchy, where he replaced founder Hubert de Givenchy. Both houses belong to luxury goods giant LVMH Moet Hennessy Louis Vuitton.
Givenchy named another Briton, Alexander McQueen, 27, to replace Galliano.
The fashion house said in a statement: McQueens creative talent, combined with his technical virtuosity, will enable him to continue the renewal of Givenchys image while respecting its tradition of elegance.
Both Galliano, a plumbers son, and McQueen, son of a taxi driver, will design two ready-to-wear and two haute couture lines per year for their new employers.
More From This Section
Both will continue to design for their own labels -- Galliano in Paris and McQueen in London.
Gallianos first collection for Dior, the 1997 Spring Summer haute couture, will be presented in January to celebrate the 50th anniverary of Christian Diors post-war New Look.
During his year at Givenchy, Galliano transformed its strait-laced, linear clothes into some of the most romantic and imaginative creations in Paris, knocking decades off the average age of its clientele.
His romantic aesthetic is closer to Diors 1947 New Look with its sculpted bosom and spreading skirts.