The company, owned by Reckitt Benckiser, has been conducting an international review of its media requirements in a bid to streamline arrangements. Reckitt agencies in local markets are expected to be the main beneficiaries.
OMD, which has handled the main Reckitt account since 2000, already has the bulk of the UK Coty business.
Initiative handles a £4 million chunk of Coty's UK planning and buying as a legacy of Coty's acquisition of Unilever Cosmetics International last year. Unilever is a former client of Initiative and former Unilever brands still with Initiative - including Calvin Klein fragrances and Vera Wang fragrances - are expected to move into OMD.
Rimmel, which is handled by OMD, is the highest spending Coty brand in the UK with a £7 million spend. Other brands owned by Coty include Davidoff and Adidas.
Coty attracted headlines in the past year following its decision to retain Kate Moss as the face of Rimmel despite tabloid allegations of cocaine abuse. It is supporting the Intimately Beckham fragrance with a major ad campaign.
Coty, OMD and Initiative refused to comment.