Having won the project in four-way pitch, the Sheffield-based agency will prepare the campaign for February, after a period of research to be carried out by Encams.
The aim is to reduce litter in "hot spot" areas, and employers that allow workers to smoke outside their premises will be targeted.
Forty per cent of all litter in England is smoking-related, according to Ginette Unsworth, marketing manager for Encams, which is also behind the Keep Britain Tidy campaigns.
"Every day over 122 tonnes of cigarette butts, packets and matchsticks are dumped in streets, parks, playgrounds and on beaches. This puts strain on councils, which have a legal duty to clean the litter up," she said.
Dig For Fire handles advertising, direct marketing, digital media and PR for clients including Tesco, Co-Operative Financial Services, Travis Perkins and the Budget Group.
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