The group scaled back its poorly performing Beijing office earlier this year. The move led to the departure of 20 executives.
Michael Wood, the Leo Burnett China chairman, declined to comment on any impending deal. But he added: "We look to grow both our mass and specialist competences both through organic growth and through acquisition."
The 90-strong W&K was formed in January 2004 from the merger of two local shops, Welldone and Kap.