Campaign understands that the digital activity that AKQA handled for M&S is likely to move to Rainey Kelly Campbell Roalfe/Y&R, the incumbent on the creative account.
AKQA’s work for the brand included the annual Christmas "pass the parcel" activity on Facebook, which allowed users to unwrap a package to win prizes including store vouchers and Percy Pigs.
The move follows changes to M&S’s leadership team. Steve Rowe, the executive director of general merchandise, will take over as the chief executive from Marc Bolland in April.
M&S reported group revenue of £10.3 billion last year. Group profit before tax totalled £600 million, a 3.4 per cent increase year on year.
A spokeswoman for M&S said: "I can confirm that we are no longer working with AKQA. There’s no further update at this stage."