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The move avoids the dollars 100m global account conflicting with Citroen and Peugeot.
Euro RSCG/Fuel is to set up a London headquarters with approximately 20 staff to help service the dollars 100 million global Jaguar account.
Euro RSCG/Fuel won the account last week, seeing off competition at the final stage from a WPP effort comprising JWT and Berlin Cameron/Red Cell.
London's M&C Saatchi and Leagas Delaney, and Kirshenbaum Bond & Partners in New York, were eliminated at an earlier stage.
Euro RSCG/Fuel will service the account from New York and London. The network has handled Ford's Volvo account from its Amsterdam agency, MVBMS.
Jaguar was said to be impressed with the network's work on Volvo and the decision to set up a London office for Euro RSCG/Fuel sidesteps conflict with Euro RSCG's French car brands, Peugeot and Citroen.
The appointment of Euro RSCG/Fuel closes the chapter on Young & Rubicam's four-year relationship with Jaguar; the car brand dropped the incumbent from the pitchlist in February 2005.