Nick Robeson has pledged to make it a disappointing end to 2008 for Ross, 48, who has been criticised for obscene phone calls to Fawlty Towers actor Andrew Sachs.
The £6m-a-year BBC presenter was suspended from his job and had paparazzi camped outside his door after the radio stunt with Russell Brand went badly wrong.
Last year Mr Robeson, of well-heeled Hampstead Garden Suburb, north London, was outraged by Ross's yuletide spectacular winning over his two sons Ben, eight, and Edward, six.
The management headhunter has now thrown down the gauntlet as he goes head to head with his high-profile neighbour.
Nick said: "Last year it was a bit of a joke – Jonathan Ross vs. us.
"This year with all of his pressures, Jonathan's gone for more of the same as last year but after going to Las Vegas we've decided to push the boat out a bit.
"I've done something a little extra – I've got an 8.5ft bear and its cub as well as lights across the house and hedges."
Although the conservative suburb has its own trust, which often blocks alterations to the appearance of properties, the locals love the new decorations – which also include illuminated reindeer.
He said: "Already this year people are putting notes and chocolates through the door thanking us.
"Christmas is a time to relax, smile and have fun and in this marketplace it is particularly important.
"If this puts a little smile on people's faces then I am absolutely delighted with it."
Even if Mr Robeson doesn't manage to steal Mr Ross's decorating crown, he has at least won his two most important fans back.
His youngest son Edward said: "The lights are bright and colourful and lots of neighbours stop to look at them, someone even dropped sweeties through the letterbox.
"I want more lights next year so it's even more colourful."
- telegraph.co.uk
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