The travel planner is inviting agencies to pitch for the account in the coming weeks.
Carat previously handled the media buying on a one-off TV project for the organisation, which it won in May this year, but did not retain it as a client.
The Cyprus Tourism Organisation's appointment of Carat followed a review of its media in the UK as well as its business across Europe, called in September last year.
The organisation's media was previously handled by OMD in the UK. It uses a number of agencies throughout its European markets.
Michalis Metaxas, the organisation's marketing director, led the previous review.
The Cyprus Tourism Organisation is the official tourist organisation in the south of Cyprus.
It has a status of a semi- governmental organisation, charged with overseeing the industry practices and promoting the island as a tourism destination abroad.