Top Canadian outdoor retailer Mountain Equipment Co-op has signed a deal with Californian outdoor apparel company Patagonia for the sale of Patagonia products.

The agreement enables Mountain Equipment to sell Patagonia products starting in autumn 2006.

Patagonia's goods will be featured through all Mountain Equipment sales channels - retail stores, catalogue mail-order service and website.

With the move, Patagonia products will become Mountain Equipment's second-largest apparel line next to its own.

The new relationship is the culmination of several years of discussions between Patagonia and Mountain Equipment. The two companies will also join forces on a series of environmental initiatives.

Bill Kulczycki, Patagonia Vice-President of international sales, said: "Over the past five years we have been involved in many conferences and meetings with Mountain Equipment as they have moved to using only organic cotton in their products and developed more sustainable business practices".