M: was one of four agencies pitching for the account last week. Lloyds Banking Group's head of communications Shane O'Riordain and CEO Eric Daniels also heard pitches from Citigate Dewe Rogerson, Chime Communications/Bell Pottinger and Tulchan Communications.
Eight-year incumbent Finsbury was also invited to re-pitch but decline to participate in the process.
PR Week understands the decision to re-pitch the account was driven by Eric Daniels, who felt that Finsbury and its founder Roland Rudd had a closer relationship with Lloyds' Chairman Sir Victor Blank than with himself.
O'Riordain would not confirm or deny that the group was in negotiations with M:, but said that a decision on the account was imminent.
M:'s founders Nick Miles and Hugh Morrison were not immediately available for comment.