Fallon won the account after a final pitch against Campbell Doyle Dye after Quiet Storm and St Luke's were ruled out at an earlier stage.
Bacardi Martini-severed its 10-year relationship with McCann Erickson in November 2004 after the agency failed to come up with an alternative strategy to its "Welcome to the Latin Quarter" idea.
Andrew Carter, director of marketing at Bacardi-Martini UK, said: "Fallon impressed us with the outstanding strategic and creative work throughout the pitch process."
The decision followed a year of tension between the client and agency. The advertiser had been close to Ben Langdon, McCann Erickson's former chairman, and Chris Hunton, its former chief executive.
The troubled drinks manufacturer saw its international net profit fall by 21% last year to $331m (拢172m).
It has been searching for a new creative strategy following the introduction of new Ofcom rules that say ads must not link alcohol with sexual activity.
McCann's most recent work for Bacardi starred Raoul Bova partying at a train station and before that featured Vinnie Jones who was dropped after an air-rage attack in 2003.
Robert Senior, managing partner at Fallon, said: "We're very excited about working with Bacardi, a great brand in rude health, full of ambition and opportunity. It doesn't get any better than that."
Media planning and buying in the UK will continue to be handled by Universal McCann.
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