Nike are set to be trumped by adidas in the battle for Manchester United's kit sponsorship.

The Daily Mail says senior insiders at the German sportswear giant believe a £60million-a-year deal has all but been agreed, even though current sponsors Nike retain the right to match any offer and extend a partnership that dates back to 2002 with United.

That, however, is thought to be unlikely when Nike are sure to question whether it is worth more than doubling their original £300m 10-year deal - which expires in June 2015 - when the deposed champions are going through this difficult period of transition.

United officials met adidas executives in Germany after their recent Champions League encounter against Bayern Munich and senior figures from the sportswear brand have been attending recent matches at Old Trafford.

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