The web giant has narrowed its shortlist down to four agencies for a consumer and press office brief, with pitches and decisions to take place in early May.
The account, thought to be well into six figures, has been described by tech PROs as one of the most sought-after in the industry.
Yahoo has also bolstered its in-house PR team after some recent high-profile exits. Lexis PR account director Lucy Freeborn has started at Yahoo as head of UK PR, reporting to director of European comms Rose Davidson, who has just been handed a permanent contract after carrying out the role on an interim basis.
Yahoo recently lost European comms director David Sawday and head of corporate PR Alex Laity, with both leaving for IT start-up Phorm (PRWeek, 13 March).
Davidson said: 'We are looking for a dynamic, creative team that will help us achieve consistent and relevant coverage in the consumer media. Yahoo is already the independent starting point for more than 96.9 million unique users across the UK and Europe. We're looking forward to working with a new team to help us build on that story.'