HMV e-commerce director Europe Stuart Rowe confirmed that the group was in talks with agencies about HMV's music download service, which will be named in a month's time and is scheduled for launch this summer.
Market sources say the account could be worth as much as £100,000.
'I am not going to talk about fees, but we do want this to be a really big and successful launch. If you pay peanuts you get monkeys,' Rowe said.
He added that the pitch did not affect Coalition, which has handled HMV's consumer and music PR since 1993. The successful agency will report to HMV head of press and PR Gennaro Castaldo.
Last August, HMV announced the £10m development of its download business, which will allow customers to download music and video in-store or through the company's website.
HMV will compete with downloads that are already being offered by Napster, Apple iTunes, Sony Connect and Tesco.