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The move consolidates BMW's UK planning and buying businesses, which have been held, respectively, by Omnicom's PHD and Vizeum since September 2005.

The decision is believed to follow an internal review of suppliers at the German car maker, managed by UK marketing director Richard Hudson.

It is understood BMW's £1m digital advertising business, handled by ZenithOptimedia's Zed, is not affected by the review.

According to The Nielsen Company, BMW spent £16m on traditional media in 2008, including £6m on television, £5m on press and a sizeable £2m on cinema.

Founded in 1916, BMW also now owns Mini and is the parent company to Rolls-Royce Motor Cars.

After Germany, the UK is the car manufacturer's biggest market in Europe, selling around 180,000 new cars a year.