Insolvent German retailer Woolworth is to sell discounted sports goods as the company's administrators continue to restructure the chain.

Woolworth has signed an exclusive contract with fellow German company Sport Concept to supply discounted sports apparel and footwear, with an initial 60 stores taking the merchandise.

Company administrator Ottmar Hermann said the deal, along with plans to refurbish 150 stores, were a "clear sign" to staff and customers that the new-look chain could be a success.

Woolworth Germany sought insolvency protection in mid-April, affecting more than 300 branches and nearly 10,000 staff.