The supermarket chain's £3m two-year contract with Rooney's fiancee came to an end last month and the company has decided not to renew it.
Asda executives think that the 22-year-old WAG McLoughlin is too young to represent the brand's George clothing range, which it wants to target at the over-25s.
According to a report in The Daily Mail, Asda is aiming its sights at more "upmarket" celebrities to appear in its advertising, such as Joanna Lumley, Helen Mirren, Sienna Miller and, according to a source of the paper, the French President's wife Carla Bruni.
There is no confirmation if, former model and now singer, Bruni, who is Italian, has ever been in to an Asda.
Asda is the latest supermarket linked to dumping an arguably downmarket celebrity from its advertising. In January, Iceland denied speculation that fomer Atomic Kitten Kerry Katona had been dropped from its advertising, arguing that she was still under contract.
Asda's advertising is created by Fallon and recent campaigns have starred celebrities including football pundit Ian Wright, Ozzy Osbourne's wife Sharon and comedians Paul Whitehouse and Victoria Wood.