The supermarket chain has approached several undisclosed shops with a view to holding a pitch. The process is being handled by the AAR.
It is understood that the successful agency will be responsible for producing consumer targeted direct mail campaigns as well as in-store point of sale advertising.
The move to appoint a direct marketing shop marks a shift in strategy for the supermarket chain, which currently has no retained below-the-line agency.
Morrisons has traditionally focused on above-the-line activity and recently launched a TV campaign fronted by Denise Van Outen.
As well as shifting its focus to direct marketing channels, the supermarket is also seeking to revamp its online presence and kick-started a hunt for a digital agency in June. A decision on that pitch is not expected until March 2008.
The news comes just three weeks after the supermarket chain appointed its new chairman, Sir Ian Gibson, who also holds the position of chairman at Trinity Mirror. Gibson replaces the former chairman, Sir Ken Morrison.
The below-the-line review will not affect the advertising business, which is currently held by Delaney Lund Knox Warren. The agency won the £37 million account last August following a pitch against Euro RSCG and Leo Burnett.
Morrisons had not returned calls as Campaign went to press.