Adidas is in pole position to become Manchester United’s new kit supplier after Nike pulled the plug on negotiations yesterday over the club’s huge financial demands.

The American sportswear giant confirmed in a statement last night that it would not be renewing its sponsorship deal with the Barclays Premier League club when the present 13-year contract expires at the end of next season.

Nike’s relations with United have become strained during protracted talks over the past 18 months, in which the American company felt that the club were demanding too much money for their global retail. Nike’s withdrawal paves the way for adidas to join forces with United from the 2015-16 season, although it remains to be seen if it weakens the club’s negotiating position