Competitions and trails will run across all shows on the station to promote Christmas shopping at the chain, while Virgin Radio will be played in Debenhams stores with trails from DJs urging customers to tune in, as well as in-store branding.
A competition will give listeners the chance to win prizes - from £250 gift cards to a trip to London to see a theatre show and enjoy a £2,000 Debenhams shopping spree.
"The demographics of Debenhams shoppers and Virgin Radio listeners are very similar," said David Andrews, marketing director at Virgin Radio. "This co-promotional activity will be of huge benefit to both brands."
Liza Freudmann, marketing controller at Debenhams, said that the sponsorship enabled the store to engage with millions of listeners across the country and encourage them to do their Christmas shopping at Debenhams.
The deal starts this week and prize giveaways will run until 15 December.