Havas is understood to have fought hard to hang on to its largest piece of US media planning and buying business, knowing that a loss so soon after it lost the $300m Intel account would spell bad news for the group.
Havas has been the subject of a shareholder battle, with French corporate raider Vincent Bollore building up a 20% stake in the firm, possibly threatening the position of chief executive Alain de Pouzilhac.
MediaCom was given extra time to put its case forward, which delayed the eventual outcome of the review, which kicked off in the autumn.
A spokesman for VW North America said: "VW anticipates that its decision to also work with MediaCom will result in improved financial efficiencies and more influence in the marketplace, given its parent company's formidable international business clout in media buying."
For WPP, the win comes just days after its merger deal with Grey Global, parent of MediaCom, got the go-ahead from the European Commission.
The win gives MediaCom control of most of VW's $800m global media account. It already handles the European media account and it is understood that VW management in Germany wanted to consolidate with MediaCom, while US executives favoured MPG.
Havas' Arnold in Boston continues to handle VW's North American creative chores and another Havas agency, McKinney + Silver in Raleigh, North Carolina, handles Audi. In its statement, VW said the selection of MediaCom will have no impact on its relationship with Arnold.
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