The move follows this morning's announcement by DaimlerChrysler that it would pull out of Mitsubishi Motors, putting the Japanese firm's future in doubt.
DaimlerChrysler said it made its decision because it could not agree an acceptable deal with other Mitsubishi shareholders.
As part of the media move Deutsch is expected to hang on to creative, media planning, interactive and direct marketing duties.
In the UK, media is handled by PHD's sister Omnicom shop Manning Gottlieb OMD.
Creative is handled by StrawberryFrog, which won the account in November 2002. Online activity is handled by BlueberryFrog.
Last year StrawberryFrog launched a European TV campaign for the 4x4 Mitsubishi Outlander featuring the Jam classic 'A Town Called Malice'.
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