Celtic Football Club has signed a sponsorship deal with Nike and says it will not be extending its agreement with Umbro Plc.

Umbro, which has been working with Celtic for several years, said the two parties were unable to reach acceptable terms for contract renewal.

It added that the decision is unlikely to have any major impact on its business.

Celtic said the agreement with Nike European Operations Netherlands BV will begin on 1 July 2005, and is planned to last for five years.

Nike will pay royalties to Celtic on its sales of Celtic-branded products.