Draftfcb will continue to focus on developing its Sydney operations.
In a statement, the agency said it would fulfill its commitments to Honda and effect a smooth turnover to the new agency. It will also continue discussions with other Melbourne-based clients as to the best way forward to manage their businesses.
"For our staff we are looking at placement options for those interested in moving to another Draftfcb office and we are helping where possible to assist them find new employment opportunities locally in Melbourne," read the statement.
Leo Burnett's win follows a competitive final round of pitching with agency BMF.
Stephen Collins, Honda Australia director and general manager of sales and marketing, said that Leo Burnett had successfully developed "great campaign ideas" for Honda to drive its brand positioning of "clever thinking through the 'Power of Dreams'".
"Towards the end of this year, consumers will see a fresh approach from Honda and we will maintain a solid advertising spend to support the launch of exciting new models," he promised.