The travel company has been approaching creative agencies directly with the brief and is looking to put together a pitch list by the end of the month. M&C Saatchi will not defend the business.
M&C Saatchi has produced Virgin Holidays’ advertising since 2012, when it won a pitch against the incumbent agency, Elvis.
Tom Bazeley, M&C’s Saatchi's chief executive, said: "We’ve loved working with the Virgin Holidays brand, and are proud to have played a part in a success story that saw company profits double last year and record trading figures over the last month. We have chosen not to repitch for the business."
A spokeswoman for Virgin Holidays said: "Our contract with M&C Saatchi comes to an end in 2016 and as good practice for any relationship, we'll be reviewing our requirements for the future."