Clothing manufacturer Kellwood Co has agreed a major deal with apparel giant Phillips-Van Heusen Corp for a new women's sportswear line to be sold under the world-famous Calvin Klein brand.

The new line will be available in department stores in the United States as early as next spring with the deal coming just a few days after the pair signed a long-term licensing agreement to market Izod's women's swimwear line.

Financial terms were not revealed but Kellwood will be responsible for the production, sourcing, distribution and working capital for the line, with CK handling design and account approval and having control over branding and advertising.

The agreement will also see Kellwood collaborate with Andrew Grossman and Alexander Vreeland, who have formed a new business venture with Jay Schottenstein, GAV, to help develop and launch the line.

Phillips-Van Heusen, which bough Calvin Klein for $430 million in February, said in a news release it expects the line to generate annual wholesale sales of more than $500m.

It added the range is expected to rival the "Lauren by Ralph Lauren" line - currently at the centre of a legal battle between Polo Ralph Lauren Corp and Jones Apparel Group Inc.

"This is the right time for us to be launching this business and I couldn't be more pleased about the people whom we'll be working with," said Calvin Klein.

"Andrew Grossman and Alexander Vreeland have a history in this business, they have an appreciation for what I do, and Kellwood has the business platform to support them," he continued.

"We are enthused to be partnering with the Phillips-Van Heusen and Calvin Klein organisations on a women's better sportswear collection," added Kellwood chairman, president and CEO Hal Upbin.

"With our worldwide sourcing capabilities and our talented design partners, Andrew Grossman and Alexander Vreeland at GAV the marketplace will be amazed with the new collection, which will capture the aura of Calvin Klein."