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You have to be willing to leave. There’s no way around it.
You’re in the crosshairs as soon as you do this unless you’re truly a golden goose for the agency.
Pro
I did it.
Competitor made an offer for higher salary.
I gave current agency opportunity to match.
Current Agency matched, and then some.
Stayed with Current Agency a little longer.
Until 2nd Competitor came in and gave a much higher offer.
Took the new job.
Happy with decision.
But yes you have to be willing to leave.
I did it once but then ended up leaving after a bit anyway—which is likely to happen (see the link below).
My tip would be make sure you’re cool with leaving because your employer could say “take it!”
https://www.vice.com/en/article/akdvgj/can-i-use-offer-to-get-raise-promotion-at-current-job