Nike is facing mounting competition from an ambitious Japanese fashion retailer as the battle to become Manchester United’s kit provider intensifies.

Uniqlo’s determination to wrest control of United’s global retail, apparel and product licensing business from Nike is continuing to drive up the value of one of the most sought-after sponsorship contracts in sport.

United are in line to net a deal worth in excess of £70 million a year as the club’s commercial pull shows no sign of diminishing despite the club’s miserable on-field performance this season.

Nike has a clause in its existing £23.5 million-a-year deal with United, which expires next year, that gives the sportswear giant the opportunity to match any rival bid.

Adidas initially appeared to be the main challenger to