The firm has instead turned to Clarion Communications to handle its PR activity following a five-way pitch.
Clarion has been charged with promoting Vue's brand position to consumer and corporate media. Freud previously held the account for eight years and unsuccessfully repitched for the business.
The switch is understood to have been heavily influenced by a change in comms strategy at the cinema company.
The brief now centres on raising Vue's profile across all digital media platforms. Clarion will also drive awareness of Vue's recent initiatives, including 3D, Mystery Movies, Superior Seating and Over 18s.
Clarion's existing expertise in film, digital and regional PR is understood to have underpinned its appointment. The account will be headed by Clarion board director Shelley Wyatt.
'Vue has big ideas for future growth,' said Clarion CEO Gary Freemantle. 'These include plans for at least five new sites opening in the next three years, as well as new and leading initiatives with external brand partners.'