The political party had approached a number of agencies about its on- and offline communications. However, insiders say it has now cancelled its plans. A spokesman for the party refused to comment on 'commercial contracts'.
When the Labour Party updated the Electoral Commission on its debts last month, it was £15.8m in the red.
Saatchi & Saatchi have held the party's above-the-line account since September 2007, and devised the slogan 'Not flash, just Gordon.'