Karmarama, an agency more renowned for its "make tea not war" campaign for the Stop the War Coalition than its links with middle England, is thought to be developing work related to social causes for the Tory Party.
Cameron is keen to establish a more caring image for the Tories and has pushed social and green issues higher up its agenda. The Tory Party business, which had billings of £8 million during the 2005 general election, was held by M&C Saatchi's The Immediate Sales Company.
A Conservative Party spokesman said: "We are in the early stages of talks with a number of agencies, including Karmarama."
- Comment, page 44.