Fallon has been the Stratham, N.H.-based marketer's agency of record since August 2001.
Ken Pucker, Timberland's chief operating officer, in a statement said, "We have made a strategic decision to move away from a retainer-based relationship with our advertising agency."
Fallon's New York president, Anne Bologna, said in a statement: "Given Timberland's shift in priorities, the [agency of record] relationship just didn't make sense, so we agreed to part ways."
Timberland spent $7.2 million on measured media for the first 11 months of 2003 and $10.6 million in 2002, according to TNS Media Intelligence/CMR.
The change does not affect Timberland's public relations agency of record, Omnicom Group's Porter Novelli, New York.