Thompson, who has been with News Group for three years, reported to Terence Cassano, head of planning and strategy at the News International subsidiary, which houses The Sun and News of the World brands.
It is understood that Thompson, who leaves News Group next month, will take up the role vacated by Phil Macauley, who has moved internally to head agency sales at Yahoo.
The hiring of Thompson is one of the first key appointments made by Yahoo's new UK and Ireland commercial director Warren Burke, who took over the role formerly held by Blake Chandlee in February this year.
There have been several key departures from Yahoo's UK commercial team in recent months. Richard Firminger, its regional sales director and the head of its UK search operation, left without a job to go to. His departure followed that of Chandlee and that of Stephen Haines, Yahoo's head of agency strategy. Chandlee left Yahoo in October last year to become commercial director at Facebook.
News Group confirmed that Thompson was leaving, adding that it had yet to replace him. Yahoo declined to comment. Thompson's move comes as Yahoo continues to grapple with Microsoft's $44.6bn (£22.4bn) takeover pursuit.
A deadline imposed by Microsoft for Yahoo to accept its offer expired on 27 April, with the software giant now considering whether to launch a hostile takeover bid.
Microsoft first approached Yahoo with a takeover proposal in January, but has met stiff resistance from the company.
Observers believe Microsoft could now seek to increase pressure on Yahoo for a deal by trying to get supportive voices onto Yahoo's board - a so-called proxy battle.
John Reynolds, Media Week, 29 April 2008, 07:30am
News Group's Thompson joins Yahoo
LONDON - News Group head of communication strategy Paul Thompson is leaving the media company to take up a role with Yahoo, understood to be head of planning and strategy at Yahoo Europe.
News Group's Thompson joins Yahoo
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