PHD North's work began with the provocative Emmanuel Adebayor posters put out before the Arsenal game earlier this month and will continue with a series of projects designed to drive brand engagement with fans, as well as corporate hospitality.
The agency's appointment follows the arrival of former Fallon director Chris Kay as head of marketing in June.
He called PHD North "the natural fit" for the brand, with its "mix of a deep local knowledge aligned with a strategic rigour and an honest creative ambition".
PHD North is based in Manchester and is part of the PHD Group, which also incorporates PHD, Rocket and Drum.
Jason Spencer, managing director of PHD North, said future communication would be focused on engaging fans "past and present".
City lost its 100% Premier League record on Sunday after losing 4-3 to local rivals United following Michael Owen's last-minute winner.
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