The review is being handled by COI, and a number of agencies have been contacted.
A shortlist of four is expected to be drawn up imminently, with pitches taking place towards the end of this month.
The successful agency will create high-profile campaigns for the IPS, including briefs regarding the national ID card initiative, which is to be rolled-out on a voluntary basis to British citizens later this year.
The work will support campaigns created by IPS's above-the-line agency Abbott Mead Vickers BBDO, which was appointed in March. In September last year, the Home Office also handed a brief to M&C Saatchi, which focused on notifying employers about the introduction of identity cards for foreign nationals.
The Government has proposed the introduction of national ID cards for all UK residents over the age of 16, which would combine the cardholder's biometric data with their identity details.
The scheme was due to launch next year, but the Home Office has been forced to delay until 2012 due to the pressure put upon the organisation to cut costs.