She has been asked to help imbed Wireless Group into News Corp. Rupert Murdoch’s News Corp acquired the owner of Virgin Radio for £220m last year.
Dolan joined Sky in 2002. She worked for the B2B division serving pubs and clubs on pricing and marketing strategies.
Rebekah Brooks, chief executive at News UK, said: "In this new role, Alison will work on the long-term strategy and business development for News UK with an immediate focus on ensuring the effective integration of Wireless Group into the wider business."
Murdoch's 21st Century Fox also has a 39% stake in Sky.