The Welsh tourism board is looking for a new DM shop after it parted company with the incumbent, Partners Andrews Aldridge, last month.
At the time of the split, it was expected that the majority of future work would be handled by W&K or an in-house marketing team. However, the company is now keen to find a new retained agency.
CMW, Kitcatt Nohr Alexander Shaw and Rapier have been shortlisted to pitch for the business, with meetings taking place this week.W&K is expected to make an appointment early next month.
PAA had worked on the Visit Wales DM business for almost six years, and had created a number of award-winning campaigns, including "wetsuit", which won silver at the Campaign Big Awards in 2008, and "compass", which picked up a bronze at last year's DMA Awards.
The agency successfully re-pitched with W&K for the account last year, after Visit Wales had called a statutory review of the business.
Visit Wales' most recent ad campaign featured the Welsh comedian Rhod Gilbert exploring the wide variety of attractions that the country has to offer.
The spot was supported by a DM campaign from PAA that carried the strapline: "Try something new(ish)."