Morrisons decided to renew its relationship with BDH after a contest involving another Manchester agency, Cheetham Bell JWT.
Poulter Partners in Leeds declined an invitation to repitch after Morrisons disclosed that it was talking to other agencies.
Morrisons, with 121 stores and a 5.9 per cent share of the UK market, is looking to extend its presence beyond its Northern heartland. It had hoped to do this by acquiring its Safeway rival, but suffered a setback when its bid was referred to the Competition Commission.
Michael Bates, the Morrisons marketing director, said: "We saw excellent presentations, both creatively and strategically, and are delighted to award BDH the business. We now look forward to building on the strong foundations laid down by Poulter Partners."
Morrisons' media buying will continue to be handled by Mediaedge:cia Manchester.
Neil Griffiths, the BDH group managing director, added: "Both companies have grown and developed considerably in the intervening period, so it's an exciting time to be working together again."