The six-year relationship has been ended due to "creative differences" between the agency and the brand.
A pitch is not expected to take place for the business, instead forthcoming campaigns will be handled by Visit Wales' above-the-line agency Wieden & Kennedy, or through an in-house marketing team.
PAA, which first won the Visit Wales business in 2004, has enjoyed a successful period working on the account.
The agency has created a number of award-winning campaigns for the brand, including "Compass", which won a bronze award at last year's DMA Awards, and "Wetsuit", which picked up silver at the 2008 Campaign Big Awards.
News of the split comes just six months after PAA pitched successfully to retain the Visit Wales account, after the tourist board called a statutory review of the business.
Partners Andrews Aldridge splits with Visit Wales
LONDON - Visit Wales, the Welsh Assembly's tourism body, has parted company with its direct marketing agency, Partners Andrews Aldridge, by mutual consent.
