BDP's Liverpool studio has been appointed as master planner, architect and urban designer by Chester City Council for a major part of the Chester Renaissance programme.
The work is to be part-funded by the North West Development Agency and English Heritage.
BDP will provide a framework for the regeneration of three areas; the Cathedral and its surroundings, The Rows historic retail and leisure core and Chester Castle.
The council hopes the £1.5bn programme of city centre development will help fulfil its vision of developing a must-see European city by 2015.
BDP will work with its chosen consultancy team of Knight Frank, JMP, Redhouse Consultants and Oxford Archaeology North.
Rob Shackleton, architect at BDP's Liverpool studio, said: "This is an incredible project for the team and an exciting opportunity to work alongside Chester Renaissance, Chester City Council and Chester Cathedral during an important period in the city's re-development.
"The significance of this project cannot be underestimated with regards to the long term future and improved success of Chester, and we believe this will guide the city towards becoming one of the most outstanding visitor destinations in Europe."
BDP won critical and popular praise for its master planning of Grosvenor's Liverpool One which opened last year.