The paper presents an assumed strain formulation over polygonal meshes to accurately evaluate the strain fields in nonlocal damage models. An assume strained technique based on the Hu-Washizu variational principle is employed to generate a new strain approximation instead of direct derivation from the basis functions and the displacement fields. The underlying idea embedded in arbitrary finite polygons is named as Polytopal composite finite elements (PCFEM). The PCFEM is accordingly applied within the framework of the nonlocal model of continuum damage mechanics to enhance the description of damage behaviours in which highly localized deformations must be captured accurately. This application is helpful to reduce the mesh-sensitivity and elaborate the process-zone of damage models. Several numerical examples are designed for various cases of fracture to discuss and validate the computational capability of the present method through comparison with published numerical results and experimental data from the literature.