Real Madrid will sign a 1.6 billion euro contract with Adidas LaLiga Santander Before the end of this season

Adidas and Real Madrid have reached an agreement to sign a 1.6 billion euro contract that will see the German corporation manufacture Los Blancos' kits for the next 12 years.

Pen will be put on paper at the end of the season in a deal that will see Madrid earn as much as 120 million euros per season.

The current contract was set to come to an end next year, but with its renewal, Madrid will be the highest-paid team sponsored by Adidas.

According to the agreement, Madrid will benefit from 20 percent of the sales related to their products, as well as nine million euros in material for all the teams of the club.

Adidas will have their own space at the new Santiago Bernabeu, with the shop expected to be the brand's largest anywhere in the world.

Elsewhere in their portfolio, Adidas will have Bayern Munich, Manchester United and Arsenal next season, while competitors Nike will be able to boast Barcelona, Paris Saint-Germain, Chelsea, Tottenham Hotspur and Atletico Madrid.

Meanwhile, Puma, another German manufacturer, will dress Manchester City, Valencia, AC Milan, Borussia Dortmund and Palmeiras.