The European remit covers a total of 38 countries in Europe, the Middle East and Africa.
Good Technology, which is 76 per cent owned by WPP, did not repitch for the account.
The appointment consolidates Lateral's hold on the Levi's account; the agency already holds the US business, which it picked up in the summer of 2000.
The agency will be responsible for online creative advertising work, website redesign and strategic marketing consultation to bring in new media, such as SMS specialists, for mobile campaigns.
Lateral had held the business for five years from 1995 until late 2000, when the account was reviewed and Good Technology, Oyster Partners and the now defunct Blueberry were called in to pitch for the work.
Levi's European operation made the decision to review after deciding to refocus its digital strategy.
Lateral's first new work for Levi's is expected to be produced within the next six weeks.
Lateral has a history of strong creative work for Levi's. Last year, the US agency's "lost change" campaign for the Levi's Silver Tab range received critical acclaim.
Levi's Europe also includes the Dockers brand, which does not come under Lateral's digital remit.