McCann's withdrawal followed objections by rival FMCG firm SC Johnson, which is represented by McCann's sister Interpublic Group agency Foote Cone & Belding.
The issue was raised two weeks ago by SC Johnson with executives at Interpublic and CEO Michael Roth then asked McCann to withdraw from the pitch.
A decision was made on the final presentation day last week, when McCann arrived at Reckitt-Benckiser's headquarters in Slough, but Interpublic insisted McCann was only there in the capacity of servicing an existing client.
McCann Erickson was one of three agencies participating in the Reckitt-Benckiser review alongside Euro RSCG and JWT.
Reckitt-Benckiser, which is behind the Clearasil, Veet and Airwick brands, announced in January that it wished to trim its agency stable to two, and that it would be reviewing its account dealings.
McCann Erickson first struck a deal with Reckitt-Benckiser in October 2005, when it completed the 拢1.9bn acquisition of Boots' Healthcare International, which includes over-the-counter brands Clearasil, Strepsils and Nurofen.
In July 2005, Reckitt-Benckiser signed a 拢10m deal with ITV to sponsor soap 'Emmerdale'.
Reckitt-Benckiser, McCann Erickson and Interpublic Group have all so far declined to comment on the withdrawal.
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