Karmarama will concentrate on developing press and outdoor work for Amstel.
Its parent company, Heineken, announced earlier this year it was shifting its £6.5 million UK advertising budget away from television to focus on sports sponsorship, blaming the cost of airtime and the cluttered ad environment.
However, the agency is scheduled to create TV work for Amstel in 2007.
Earlier this year, Amstel unveiled a UK growth plan that included the reintroduction of cans in upmarket bars after a ten-month absence.
Although Amstel's main brand advertising will disappear from UK screens for now, it will still have a TV presence via its sponsorship of the Uefa Champions League. Earlier this year, Amstel appointed StrawberryFrog to produce six global TV commercials. The brief included broadcast idents before and during every live match on both ITV and Sky.
Amstel was launched in draught format in the UK in 2002. Heineken regained the licence for Amstel from Bulmers in July 2003.