Dubbed 'The Big Clubcard Voucher Exchange', the campaign will also allow Clubcard users to spend on new non-food items such as the new Samsung Galaxy Tab, and online.
Tesco expects some £50m of Clubcard vouchers to be doubled and exchanged into store vouchers.
Customers must exchange a minimum of either £5 or £10 depending on the department, and exchanges can be in multiples of £5 or £10 only.
Carolyn Bradley, Tesco’s UK marketing director, said: "In the lead up to Christmas, this promotion provides our Clubcard members with a great way to make savings on simple everyday products through to stocking fillers and even those big gifts for under the tree.
"For Tesco, it’s our way of saying a huge thank you to our customers and with the broad range of items included, we’re confident that this Big Exchange will have mass appeal."
Five pounds in Clubcard vouchers can be exchanged for a £10 rewards token to spend on toys; clothing; baby and toddler; opticians; selected electricals, beauty and fragrance; flowers and plants.
Then pounds in Clubcard vouchers can be exchanged for a £20 rewards token to spend on artificial Christmas trees and Christmas lights; finest wine and finest champagne; beds, bedroom furniture and bedding; DIY; computers; phones and accessories.
The campaign will last from 8 November until 5 December.