Teneo was up against Portland and Edelman in the final round for the brief, which covers chief executive and executive advisory, strategy and planning, corporate, financial and brand communications, ESG, sustainability and community, issues management, campaigns and employer brand.
Teneo was initially brought in by Tesco's then-chief executive Dave Lewis in 2014 to rebuild trust following the accounting scandal of that year in which the supermarket group was estimated to have overstated profits by up to £326m.
The recent pitch follows Lewis' departure from Tesco in 2020 and the appointment of Ken Murphy as his successor.
PRWeek revealed in February that the competitive tender process had been launched, with the company seeking a "dynamic, creative, nimble partner who shares our values, understands our audiences and is an extension of our Tesco team".
Teneo confirmed that it had been appointed to the brief.
The agency's re-appointment will be welcome news at the UK arm of the business, which has undergone a turbulent couple of months after former chief executive Declan Kelly admitted acting inappropriately at a charity event. Pressure had mounted on Kelly to resign after one of Teneo's clients, General Motors, severed ties with the consultancy.
Teneo has announced several senior hires across the world in the period since Kelly's resignation in June, including former Xerox chief executive Ursula Burns as chairwoman.
Earlier this week Teneo announced the appointment of Martin Drummond as a senior managing director in the London office, to lead its valuation advisory services practice. Drummond was previously an MD in the valuation services team at management consultancy Alvarez and Marsal.
This month Teneo named former Brunswick managing partner Philippe Blanchard as president, Continental Europe. Blanchard formerly ran Brunswick's office in Brussels and also worked at Hill+Knowlton as head of public affairs for the EMEA region.
Teneo also recently hired new managing directors for Singapore and Hong Kong: Yvonne Koh and Patricia Heiberger, respectively.