Manning Gottlieb OMD, the incumbent agency for two years, declined to re-pitch for the work. The news follows on closely from last week's appointment of DLKW to handle the AA's creative advertising and direct marketing account for its core roadside business.
The reviews were set in motion after the AA was acquired by venture capitalists CVC and Permira last year for £1.75bn.
Kerry Cooper, director of AA sales and marketing, said: "We were very impressed by both agencies during the pitch process and are very much looking forward to working with PHD. With the new agencies now appointed we can all work together to move the AA forward."
Tess Alps, chairman of PHD, said: "To be appointed to a brand such as the AA is a great privilege for our agency and testament to the talented team here."
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.