M&C Saatchi was kicked off the pitch earlier in the week. Karmarama and Publicis were dropped in February.
Debenhams called a review in January after Miles Calcraft Briginshaw Duffy resigned the business in order to pitch for the £20 million John Lewis account, which later went to Adam & Eve.
Stuart Pocock at The Observatory handled the review with Alison Jones, the marketing director at Debenhams. The first work will break later this year. Jones said: "We are excited and confident about the strategy and the idea JWT has delivered, and are very much looking forward to working alongside them."
Tom Vick, the joint managing director of JWT London, added: "We are absolutely delighted to have been appointed and are greatly looking forward to a long-lasting and successful partnership."