The decision to move the account is a blow to JWT, which has suffered a number of losses over the past few weeks. These include Unilever's £25 million UK Persil account and the pan-European Axa finance business.
DDB already handles the account in the US and it will now adapt this work for the European market. DDB Paris will act as the lead agency while DDB London will work on creative for the UK market.
JWT will continue to work on Lipton Ice Tea in Africa, the Middle East and Asia.
The Unilever ice tea brand returned to television advertising in the UK last year after almost a decade.
JWT created television spots based around the campaign idea: "Don't knock it until you've tried it." The ads featured Lipton Ice Tea drinkers demonstrating their adventurous spirit by undergoing activities such as toe-sucking, wearing Spandex and having a waxing session.