The deal is reported to be worth $300 million, according to the New York Times.
Murphy will continue to produce shows for 21st Century Fox, where he has almost a half-dozen series now in production, including "American Crime Story", "Feud" and a new drama called "Pose", about the vogueing scene in 1980s New York City.
By comparison, back in 2010, Murphy signed a four-year contract with 20th that was said to be worth $24 million.
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"The history of this moment is not lost on me", Murphy said following the announcement. "I am a gay kid from IN who moved to Hollywood IN 1989 with $55 dollars IN savings IN my pocket, so the fact that my dreams have crystallized and come true IN such a major way is emotional and overwhelming to me", he said IN a statement.
Murphy in January told reporters that he had his "mausoleum picked out" and thought he would be "buried on the Fox lot" when asked about his future with the studio amid the Disney sale.
Murphy, who received calls from both the Murdochs and Disney CEO Bob Iger in light of the merger news, said he initially expressed his concern that his edgy brand of content may not have a home at the new Fox.
Murphy added that he is "honored and grateful to continue my partnership with my friends and peers at Fox on our existing shows". "Scandal" and "Grey's Anatomy" creator Shonda Rimes inked a $100 million deal with Netflix in August.
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This won't be Murphy's first project with Netflix, as he already had a deal with the streaming service for a two-season order of a series centered on Nurse Ratched, the villain from the Ken Kesey novel "One Flew Over the Cuckoo's Nest", which was made into an Oscar-Winning Movie.
The writer, director and producer is well known in Hollywood as the creator (and producer, director and writer) of shows such as "American Horror Story", "Glee", "Nip/Tuck" and "Feud: Bette and Joan", all of which appeared on the Fox and FX networks.
The Netflix deal will, at least for now, split Murphy from 20th Television and Fox co-president Dana Walden, with industry chatter this week that the executive could move to run Murphy's Netflix-based company if the executive does not get a top post once the Fox-Disney deal is finalized. And it's an emotional group because, you know, I've grown up there. I started working there in my 30s.
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