His new role will involve expanding and spearheading the business website.
Mr Murphy previously held senior positions in business journalism at the Sunday Business newspaper and the Daily Telegraph, before joining the Guardian newspaper for a seven-year stint.
Mr Murphy said: "I'm thrilled to be joining the new FT team that is being built by Lionel Barber. I think he is a visionary editor who will take the paper - and its website - to a new level of excellence.
"Being part of that is a great challenge and really quite exciting."
Lionel Barber, editor of the Financial Times added: "Paul is one of the most talented business journalists around, and I am delighted he is joining us. This is an exciting new role, helping to shape the expansion of FT.com."
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