The two agencies had been in the running for the work along with OMD, which was knocked out last week. The pitch was run by the AAR.
MindShare will now handle media planning and buying for News International titles including The Times, the Sunday Times, The Sun and the News of the World.
Roland Agambar, News Group Newspapers' marketing director, said: "It has been a long process. However, we are very pleased with the outcome and look forward to working with a company as big and diverse as Mindshare."
Mindshare was a latecomer to the pitch, coming on board in September after its client Express Newspapers switched its £10m account to fellow WPP-owned media agency MediaCom, to avoid client conflict.
The review was originally announced in June, but delayed by a management reshuffle at News International, which led to the departure of the News Group Newspapers general manager Richard Webb.
Neil Jones, managing director of Carat, said: "I am proud of the work that we have done for News International across the last 12 years and we wish them every success for the future."
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