The FA have secured a new sponsorship deal with Nike

The Football Association is close to unveiling the most lucrative England kit sponsorship deal in its history.

That is despite the England team's limp exit from Euro 2016, and the sport being rocked by the sexual abuse scandal.

Sky sources understand that Nike, the American sportswear manufacturer, has agreed the terms of a £400m, 12-year extension to its existing deal with the FA.

The new long-term partnership is expected to be announced within days, although the precise timing remains unclear.

The scale of Nike's backing for ‎the FA - which will encompass all of the England national teams - will mark a modest improvement on the existing deal, which expires after the 2018 World Cup in Russia.

Nike replaced Umbro in 2013, ending an association dating back to the 1950s.

Sources said‎ the new kit supply deal would for the first time include several contingency clauses, including a financial penalty if the senior men's team fail to qualify for major tournaments.

It has also been structured to mean that there will be incentiv‎e payments if the team reaches the latter stages - expected to refer to the semi-finals or beyond - of World Cups and European Championships from 2020 onwards.

Wayne Rooney is consoled by Eidur Gudjohnsen of Iceland after England's shock defeat

English football's governing body has had had to contend with the poor performance of the men's team, with a second round defeat to Iceland at Euro 2016 following a group stage departure at the World Cup two years earlier.

Sports industry executives suggested that the size of the new ‎Nike partnership with the FA meant it would rank second behind only Germany - the reigning world champions - in national kit supply deals.

Ilkay Gundogan poses during the presentation of the new Germany home jersey

The FA's alliance, worth about £33m annually over the duration of the contract, is nevertheless significantly smaller than the most lucrative club deals.

In October, Chelsea announced a 15-year partnership with Nike worth £900m, while Barcelona's annual contract with the Oregon-headquartered sportswear manufacturer is worth an estimated £120m.

Neither the FA nor Nike could be reached for comment.