It brings to an end a long relationship between the two companies, which first began in 1999.

Since then, Sainsbury's has twice renewed its agreement with Communisis, which covered a complete portfolio of print products and services, including point-of-sale work, direct mailings and national leaflet drops.

In a statement issued to the London Stock Exchange, the board of Communisis said it did not expect the loss of the contract to have an impact on its profits for the current financial year.

It said: "The board also believes that the positive outlook for business wins elsewhere in the company will enable Communisis to compensate for the contribution which this business would have made in 2009."

Wins include the five-year business process outsourcing deal with Co-operative Financial, which Communisis won in February.

Communisis share price fell by 2p on the previous day's close of 68.25p, but were still well up on the mid-May slump, when they fell below 60p.

Last month, the company said it expected profits for the first half would be in line with expectations, but admitted there was a "slight weakness in demand for printed products".

Services provided by Communisis to Sainsbury's bank are unaffected by the contract.