Former chief executive Dalton Philips unveiled the Match and More scheme last October to “price-match” discount rivals as part of a strategy to win more customers.
It was hailed as the first of its kind to provide a price match guarantee against Aldi and Lidl as well as Tesco, Sainsbury’s and Asda.
New CEO David Potts is carrying out a widescale review of the Bradford-based group and has decided to simplify the scheme.
Now it will offer five points for every pound spent in store.
A spokesman for Morrisons told The Yorkshire Post: “We have listened carefully to customers and we believe that they will prefer this simpler loyalty scheme.
“The changes mean that every pound counts towards earning points, which is much clearer for our customers.”
Customers also will still be able to collect points on items around the store when the new terms and conditions come into effect next month.
The Financial Times suggested the move was a sign that the price war between supermarkets is easing.
However industry insiders say the market is still very tough and competitive.
Morrisons has said that its price deflation is running at around 3 per cent year on year.
The group is hopeful that it is turning the corner after several difficult years of losing market share to cheaper rivals led to plunging profits.
Like for like sales were down 2.5 per cent in the second quarter, compared to minus 2.9 per cent in the first quarter, pointing to a modest improvement.