Reed College, founded in 1908, is located in Portland, Ore.
Diver expressed excitement at the opportunity to work at a school which he described as "famously and fiercely independent."
"What distinguishes Reed for me is the depth and intensity of its commitment to training the formal intellect. It has a very classical curriculum that reminds me in many ways of the curriculum I encountered at Amherst in the 1960s," Diver said, referring to when Amherst had distribution requirements and a required senior thesis.
"I'm also very attracted to the fact that Reed is very strong in the sciences," he added. "I believe that a truly liberal education requires much more than just a passing familiarity with scientific methodology."
Walter Mintz, chairman of the Reed Board of Trustees, announced the Board's decision immediately after its Sunday meeting.
"Colin Diver is a spectacular choice to lead Reed at this time in the school's history," said Mintz while announcing the decision. "His integrity, strength of character and commitment to intellectual open-ness are emblematic of the highest standards of American higher education."
Diver is the Charles A. Heimbold, Jr. Professor of Law and Economics and the former dean at the University of Pennsylvania (Penn) Law School.
"Colin has served Penn as a respected dean, an institutional leader and a valued member of the faculty. While we regret losing a man of his caliber, we are pleased that he saw the opportunity to lead such a prestigious institution," said Penn President Judith Rodin, according to a Reed press release.
According to President Tom Gerety, Diver will not step down from his position on the Amherst Board of Trustees. As president of Reed, Diver will also serve on the Reed Board. Gerety said, however, that Diver should not participate in setting fees or salaries, as this could lead to a violation of antitrust laws.
"Colleagues at Penn say that he is spirited, brilliant and fun-attributes that are highly prized by the Reed community," said Mintz in a letter announcing Diver's election to the Reed community.
Diver will be the fourth Amherst alumnus to serve as president of Reed College and the second Amherst Trustee to do so.
An expert in administrative law and regulation, Diver received his B.A. summa cum laude from the College in 1965 and his L.L.M. magna cum laude in 1968 from Harvard Law School.
Upon graduating from law school, Diver entered public service, declining an offer to join a prestigious private law firm.
"I suppose my background in public service helps me appreciate Reed's feistiness, independence and libertarian ethos," Diver said. "It also helps explain why Reed's location in Portland is to me a huge advantage, because of the educational, service and cultural opportunities it offers."
As dean of Penn law school, he improved Penn's law faculty and helped with a campaign to raise $110 million in new gifts and pledges. Diver also added new programs in public service, interdisciplinary teaching and research, as well as clinical legal education.