The appointment, which was made without a pitch, will involve Village Green handling strategic planning, sponsorship and media buying for Stan James. The bookmaker previously managed its media inhouse.
Stan James spent £1m on media during 2009, according to The Nielsen Company, but its total marketing budget for 2010 is expected to reach £15m as it attempts to build its business in a highly competitive sports betting market.
Village Green's work is expected to build on Stan James' links to sport such as its sponsorship of the World Matchplay Darts in Blackpool.
Andy Denton, marketing director, Stan James, said: "We are at an extremely exciting time for the brand. We are looking to communicate with our loyal and potential new customers and look forward to working with Village Green in order to achieve this."
Village Green was founded two years ago by former Starcom directors Andy Roberts and Adam Bishop and Jane Kesley, the former cross-media director at Emap Advertising.