Abstract With the increasing penetration of renewables, microgrid integration has been considered as one of the most promising approaches to enhance the utilizations of various types of energy resources in smart distribution systems. In the near future, with the higher levels of intermittent renewables are envisaged, the distribution network operators will face significant challenges to the control and operation of distribution networks dispersedly. Consequently, the development of effective and motivating ancillary service schemes in a decentralized way for executing real-time control and reducing calculation and communication burden is still in its infancy and needs to be researched. To address this issue, this paper explores an optimal voltage regulation method with the participants of multi-microgrids based on multiple agent systems. Without an arbitration agent, peer agents in the multiple agent system calculate voltage sensitivities by local and neighbourhood measurements only. In this paper, a bi-level game model is proposed for voltage control process. In the upper-level, the distribution network operator searches the reasonable incentive mechanism based on the Stackelberg game. In the lower-level, microgrids make voltage control strategies autonomously based on a static game among microgrids. In the proposed method, microgrids participate in voltage control in distribution networks as ancillary service providers while maximizing their own profits. Meanwhile, the distribution network operator reduces the infrastructure reinforcement and avoids unnecessary renewable energy curtailment. Finally, the feasibility and effectiveness of the proposed method has been demonstrated on a modified IEEE 33-bus system.