Although the appointment has not been formally announced, Shin Inouye, a White House spokesperson confirmed the news on Thursday, the website stated.
The new office will fall under the Domestic Policy Council, a body that coordinates domestic policymaking in the White House and is headed by Melody Barnes, the website quoted Inoye saying.
Members of United States President Obama's transition team proposed creating an Office of Social Innovation to promote government efforts to innovate non-profit groups and social entrepreneurs expand successful approaches to tackling pressing social problems.
Shah, a India Abroad Person of the Year in 2003 and co-founder of IndiaCorps, was a member of the Obama transition project's advisory board and co-chairperson of a transition group that made recommendations about technology and innovation, including innovation and civil society, the website stated.
Indicorps, a nonprofit group that offers fellowships to Indian-Americans working on development projects in India.
She has also held positions at Goldman, Sachs & Company, the Treasury Department, the Center for Global Development, and the Center for American Progress.
Image: Sonal Shah | Photograph: Paresh Gandhi