The car manufacturer says the decision was made as part of its strategy to further reduce costs.
OMD will continue to handle the accounts in the UK estimated to be worth £70m, as well as Russia, Denmark and Switzerland. MPG will continue to work on the France, Belgium and Netherlands accounts.
Further, PSA has now launched a media review in European countries where it does not yet work with the Havas-owned MPG and Omnicom’s OMD. These are Croatia, Italy and Poland.
The pitch will kick off on June 30 and will only involve the two incumbents. The winning agency will commence work in January 2010.
In April, Peugeot appointed Belgium and Luxembourg managing director, Jonathan Goodman, into the same role in the UK.
He took over from Pierre Louis Colin who moved to Paris to become director of strategy and programmes for electric and diesel hybrid vehicles.