She cited a decision to 'align our European business units with the global template' as the cause of the review.
F-H, which continues to work for Yahoo! in the US, has worked for the portal in the UK for more than two years.
Douglas said a 'longlist' of agencies had been compiled, adding that a shortlist would be drawn up by next week.
She added: 'We need an extended skillset in order to deliver against the traditional corporate, trade and crisis needs, and also to initiate trade marketing strategy as well as European corporate comms.'
F-H formerly handled Yahoo!'s consumer PR work, but lost this account last November (PRWeek, 1 November 2002), when the account moved to consumer PR shop Cow. Douglas said this contract was not being reviewed.
Last year, Yahoo! hit the headlines when the Independent Television Commission banned a TV ad for its personal finance site that showed a naked man tied to a tree being approached by a stranger. Some viewers deemed the ad offensive to homosexuals.