Arsenal have seen adidas pull out of the race to be their next kit sponsor.

The Daily Mail says Arsenal are looking for a huge increase in their present seven-year deal with Nike worth £55million that runs until the end of next season - especially with talk that Nike's next long-term Manchester United agreement could reach £1billion.

Arsenal had believed adidas were chasing the contract, particularly as mock-up Gunners shirts with the three-stripe branding had been circulated. That would have given the club extra leverage in negotiations.

But senior adidas personnel have revealed that they considered the contract after being approached but will definitely not be bidding.