The six-year relationship has been ended due to "creative differences" between the agency and the brand.
A pitch is not expected to take place for the business, instead forthcoming campaigns will be handled by Visit Wales' above-the-line agency Wieden & Kennedy, or through an in-house marketing team.
PAA, which first won the Visit Wales business in 2004, has enjoyed a successful period working on the account.
The agency has created a number of award-winning campaigns for the brand, including "Compass", which won a bronze award at last year's DMA Awards, and "Wetsuit", which picked up silver at the 2008 ±±¾©Èü³µpk10 Big Awards.
News of the split comes just six months after PAA pitched successfully to retain the Visit Wales account, after the tourist board called a statutory review of the business.
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