The banking giant has invited two other agencies to pitch for the account, alongside incumbent agency Rapier.
The review will be completed by year end and any changes will take effect from the start of 2011.
Rapier was handed the entire £50m direct marketing account in June 2007 after a four-way shoot-out against Propaganda and the incumbents, Tullo Marshall Warren (TMW) and Partners Andrews Aldridge.
Catherine Kehoe, Lloyds TSB's head of brand and customer marketing, said: "We have enjoyed a strong working relationship with Rapier over the past three years.
"Now that their contract is coming to an end, we are taking the time to reassess the agency support needed to drive forward the strategic challenges of our direct marketing programme in 2011 and beyond. We look forward to working with Rapier and other top agencies in this review."