The AFL is looking for a new sports drink provider after Gatorade ended their official partnership with the AFL.

7NEWS.com.au understands Pepsico, the parent company, informed the AFL on Monday.

The current three-year deal, which was due to expire at the end of this year, saw Gatorade supply all 18 AFL clubs as the AFL’s 'Official Hydration Partner'.

Collingwood captain Scott Pendlebury, Cats superstar Gary Ablett and Swans co-captain Luke Parker were named brand ambassadors when the contract was signed in 2017.

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In an email seen by 7NEWS.com.au, Pepsico explained they wanted to retain the AFL agreement but are investing less in sponsorship arrangements because sports drink sales are falling.

Clubs currently use Gatorade during training sessions and matches.

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They can still purchase stock themselves for the time being.

But the AFL will be keen to find an alternative sports drink partner – it's understood the deal with Gatorade was lucrative for the league.