Real Madrid have reached a new agreement with kit sponsors adidas.

Marca says adidas and Real Madrid have reached an agreement to sign a €1.6bn contract that will see the German corporation manufacture Los Blancos' kits for the next 12 years.

The deal will be signed at the end of the season which will see Madrid earn as much as €120m per season.

The current contract was set to come to an end next year, but with its renewal, Madrid will be the highest-paid team sponsored by Adidas.

According to the agreement, Madrid will benefit from 20 percent of the sales related to their products, as well as nine million euros in material for all the teams of the club.