Timex, which is based in Middlebury, Connecticut, has shortlisted the New York office of BBH alongside Kirshenbaum Bond & Partners in New York and Modernista in Boston for the estimated $10m (拢6.35m) account.
The watchmaker eliminated Hill, Holliday, Connors, Cosmopulos, New York, part of the Interpublic Group of Companies; Margeotes/Fertitta & Partners, New York, part of the Canadian firm Maxxcom; and another Interpublic shop Mullen in Wenham, Massachussetts.
It is understood that WPP Group's Berlin Cameron/Red Cell in New York withdrew from the review.
The review, which is being overseen by agency search consultants Pile & Company in Boston, is to be concluded before the end of the year. Fallon's duties officially come to an end on December 31.
At the time Timex parted company with Fallon, which like BBH is part of the Publicis Groupe (BBH is 49% owned by Publicis), a Timex spokesman said that after 16 years "we wanted to see what else is out there".
Fallon created a number of campaigns for Timex, including the slogan "It takes a licking and keeps on ticking".
Timex currently has no agency in the UK although the last agency it worked with was Fallon in July 1999.
Timex dominates the US market with more than 30% of market and sells more watches than the next 18 best-selling brands combined.
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