Instead of appointing one of the pitching agencies, the online retailer plans to use a team of freelance creatives and an unnamed production company to create its ads.
The pitch is understood to have involved Dare, Beattie McGuinness Bungay, St Luke's and VCCP. Leo Burnett was the previous incumbent but declined to repitch.
Littlewoods appointed Leo Burnett to handle its advertising in July 2009. The agency won the account from WCRS after a pitch against VCCP, Delaney Lund Knox Warren and Karmarama.
The online retailer is part of Shop Direct Group, which also owns Woolworths, very.co.uk and the Isme shopping brand. VCCP is the incumbent on the very.co.uk and Woolworths advertising accounts. The agency was appointed by Woolworths in January.
Leo Burnett's work for Littlewoods included introducing Coleen Rooney as its brand ambassador.
The most recent campaign, "present hunt", launched at Christmas. This followed the "nice boot camp" campaign in September.