The policy being introduced by a south London council is aimed at improving health and stopping littering.
Wandsworth Council will hand over £30 vouchers if someone can prove they have given up smoking.
The policy will apply to those littering all "smoking-related rubbish" - including empty packets.
The council will also hand out pocket ashtrays to promote stop smoking campaigns and "litter education exercises" will be held to support the borough-wide pilot scheme.
Jonathan Cook, the council's environment spokesman, said the approach would "simultaneously help people give up smoking and reduce the amount of smoking-related litter".
The council's health spokesman Jim Maddan added: "We know that 65% of smokers want to quit, but often they don't know where to turn for help. This scheme will help them find that help."
Of the 614 litter-related fines issued in Wandsworth in the last year, 50% were for dropping smoking-related rubbish.
The fine is £80, reduced to £55 if paid within 10 days.
The council reported the cost of smoking to Wandsworth is around £30m a year - through lost productivity from early deaths, smoking breaks, NHS costs, passive smoking, waste disposal and smoking-related fires.
Similar schemes have been introduced in other London boroughs including Enfield, Haringey and Maidstone and the City of London.
Smokers caught dropping their cigarette butts are to be rewarded with shopping vouchers - if they complete an anti-smoking course.