“Roger Ailes hired me nine years ago when I was new to this business and he had little other than instinct to suggest it might work out," Kelly said in a statement. "I was grateful to him then, remain so today, and am excited for this next opportunity.”
Fox News chief Roger Ailes released a statement saying Kelly's "ability to command the screen, delve into the facts and lead a debate is what makes her one of the most sought-after anchors in the business."
Kelly currently anchors "America Live" from 1-3 p.m, where her genuine delivery and penchant for topical legal issues has made her popular.
The former lawyer gained national attention for her coverage of the 2012 presidential election, giving her a reputation for being on the news side of the network as opposed to the opinion side.
It's still unclear which time slot Kelly will take over. Bill O’Reilly and Sean Hannity -- who have solid 8 and 9 p.m. ratings, respectively -- have also renewed long-term contracts with Fox.
To end rumor that she might be leaving the network, Greta Van Susteren took to her blog Tuesday to confirm her contract renewal, saying "I have a long term contract with Fox and it is for a show in 'prime time.'"
But some speculate she may leave the 10 p.m. time slot, which could go to Kelly. Though Van Susteren has not commented on possible scheduling changes, her husband John Coale found out in December that he has cancer.
Insisting that he was speaking for himself, Coale on Tuesday said "I’d like to spend some quality time with my wife, at least before 11 p.m."
2014: The Year in Music [PHOTOS]