The deal, the insurer's first tennis sponsorship, will see the creation of a grass-roots tournament. The Privilege Insurance Inter-City Challenger will be open to players aged 16 and under, in a bid to find young British talent.
To qualify for the event, participants in the City Tennis Club Programme - a partnership between the LTA and local authorities aimed at regenerating courts in deprived areas - will compete at one of 15 selection days held at venues across England and Scotland.
The winners of each day will then play in the final on 18 June, a week before Wimbledon begins.
Privilege is the LTA's second insurance sponsor. Hastings Direct backs the annual women's tour event held at Eastbourne.
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