The awards, which were founded in 2006, celebrate "Fun Fearless Females" judged to be the nation's "inspirational real-life women and ultimate celebrities".
Last year's categories included Ultimate TV Personality and Ultimate Woman's Woman, which went to Dannii Minogue and Girls Aloud singer Kimberley Walsh.
Avon's sponsorship will include full integration into the awards' logo, branding at the event, and branding within the December 2010 and January 2011 issues of Cosmopolitan.
In addition, Avon will have a presence across the Ultimate Women of the Year channel on with branding on all picture galleries, interviews with the winners and in the video from the awards night.
Anna Segatti, group vice president for Avon Western Europe & Middle East, said: "Avon is dedicated to empowering women and is therefore a natural fit as the headline sponsor for the Cosmopolitan Ultimate Women of the Year Awards."
Justine Southall, publishing director at Cosmopolitan, said: "Like Cosmopolitan, Avon is an iconic brand with a rich heritage, but has innovated and evolved for its generation to be completely relevant to today's young woman."
The awards will take place on 2 November at Whitehall's Banqueting House in London.
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