The DIY retailer is using a procurement company called RD Squared to handle the review.
It is thought the company has already approached agencies and that the incumbent, Abbott Mead Vickers BBDO, will repitch.
The pitch comes six months after Campaign revealed that Homebase had briefed the AAR to handle a cost-comparison benchmarking exercise of its advertising arrangements.
Ajay Kavan, the Homebase marketing director, said: "We feel the time is right to review the market and will be placing an emphasis on the strategic direction of our brand."
AMV has handled the Homebase business since 1989 and, since then, has repitched for and successfully retained the business three times. Most recently, in 2004, it beat Lowe in a final shoot-out.