Vodafone, which announced last month that it was to hold a pitch for its high street communications, point-of-sale and in-store magazine business, confirmed its relationship with RMG Connect had now ended. It is understood RMG Connect declined to repitch for the account.
A spokeswoman for Vodafone UK confirmed the two parties had "agreed to cease working together and that [Vodafone] were now looking for a new agency", but a shortlist had not yet been drawn up.
In February RMG lost the Vodafone digital retail account to Dare after a competitive pitch.
Vodafone parted company with JWT, RMG Connect's sister agency, in December 2006, handing its entire £47m above-the-line account to Bartle Bogle Hegarty.
Dominic Chambers, head of brand and marketing communications at Vodafone, will oversee the pitch process for the retail account.