Chelsea 'agree £60million-a-year kit deal with Nike' after early termination of Adidas deal

The west London club's exisiting deal with Adidas is to be terminated six years early, at a reported cost of £40million

Diego Costa and Gary Cahill pose in Chelsea's 2016/17 Adidas kit (Adidas)

Chelsea have reportedly agreed a £60million-a-year deal with kit manufacturers Nike, having agreed to end their current sponsorship deal early.

The west London club announced last week that the existing deal with Adidas, which is believed to have been worth around £30million, would be ended six years early.

The termination is expected to cost Chelsea around £40million in compensation, according to the Daily Telegraph, but Nike are prepared to offset that loss by doubling the figure paid by their biggest rival in the sportswear industry.

Nike’s deal, which is expected to come into effect from the start of the 2017/18 season, will also ease the loss incurred by Chelsea’s failure to qualify for European competition, following a league campaign which saw the 2014/15 champions make the worst title defence in Premier League history.

Manchester United’s £75million-a-year deal with Adidas remains the most lucrative kit in Europe, but Chelsea’s new agreement outstrips those held by Arsenal and Liverpool, who have £30million and £28million deals in place with Puma and New Balance respectively.

Manchester City and Tottenham Hotspur’s kit sponsorship arrangements pale in comparison to those of their rivals, at a relatively small £12million and £10million a year, with Nike and Under Armour.

Adidas will continue to sponsor Chelsea during the 2016/17 season, having unveiled the new home kit last week. The strip was subsequently worn by the team in Sunday's final game of the season, a 1-1 draw with champions Leicester City.