Blackburn with Darwen Borough Council has appointed the agency as part of a £150m redevelopment plan, which aims to change perceptions of the town.
Creative Lynx will be tasked with developing a perceptions survey and a new brand identity for Blackburn, which has begun an improvement programme to regenerate its town centre.
The programme includes a new £25m leisure park and restoration of the town's historic buildings, as well as a £66m redevelopment of The Mall shopping centre.
Funding for the rebranding project will come from the North West Development Agency.
Councillor Alan Cottam, chair of the Blackburn town centre partnership, said: "We were really impressed with Creative Lynx's credentials in this area, they've been part of some hugely successful regeneration teams.
"More specifically we were very much sold on their ideas for how to handle the branding and communication aspect of our plans which play a hugely important part in making them work. The Council believe in consultation."
Creative Lynx, which is based in Manchester and handles pharmaceutical, education and public sector clients, has previously worked with towns including Preston in Lancashire and Corby in Northamptonshire.