The department store chain called a review of its above-the-line ad agency arrangements last month and invited incumbent Lowe to repitch.
But Lowe Worldwide CEO Tony Wright has informed the retailer that it will not be taking any further part in the pitch.
John Lewis has worked with Lowe, which recently declined to repitch for its flagship Stella Artois advertising account, since August 2006.
The pitch process is being handled by AAR, and led by John Lewis' head of brand communications Craig Inglis.
John Lewis is currently running a multi-million pound Christmas ad campaign, created by Lowe, with TV, outdoor, print and online activity. The campaign aims to eschew excessive consumerism and promote a more considered approach to choosing Christmas gifts.
The £5.6m campaign carries the strapline 'If you know the person, you'll find the right present' and is set to a remix of the Beatles classic, 'From Me to You'.
The retailer's media agency Manning Gottileb OMD and direct marketing agency Kitcatt Nohr Alexander Shaw are not affected by the review.
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