PRWeek understands that incumbent agency GCI is destined to find itself out in the cold - despite having been on a four-strong shortlist in the running for the consumer brief, believed to be worth around £200,000.
Neither Yellow Door, GCI nor Homebase would comment on the review.
Homebase wants to broaden its appeal beyond DIY enthusiasts and raise the profile of its new furniture ranges.
The chain, whose rivals include B&Q, is traditionally perceived as a DIY destination, but the company wants to attract more couples and lifestyle shoppers.
It has introduced a home-furnishing catalogue with 700 lines, and rolled out its Furniture Extra range to all stores in late 2005.
DIY spending has slumped in the past two years, with consumers hit by rising interest rates, and time-pressured homeowners increasingly turning to professionals to carry out improvements.
But Homebase in September reported that the downturn in sales had slowed and that there were signs of
recovery in the DIY market. The company plans to open another 15 stores a year, according to its website.
GCI was brought in by Homebase almost six years ago (PRWeek, 26 January 2001).