Arsenal are reportedly in talks with sports kit giants Adidas over £40m-a-year kit deal with Puma contract set to expire at the end of next season.
Arsenal's existing contract with Puma is due to expire at the end of next season and the Gunners have begun the process of finding a new agreement and Sportsmail understands sportswear giants Adidas are in pole position to become the club's next kit manufacturer, with discussions well under way.
Arsenal's existing deal with Puma is worth £30m a season but Adidas have indicated they are willing to invest significantly more.
However, Puma, it is understood, have the option to match any offer made by a competitor while other sportswear firms have also shown an interest.
Any deal north of £40m a year would represent a sizeable upgrade from the Gunners' current deal.
Also, the value of an agreement with Adidas could increase further if the club regain
their Champions League status by winning the Europa League this season.
But despite the huge cash on offer, the deal on the table from Adidas is still significantly short of those enjoyed by some of Arsenal's domestic rivals. Manchester United's Adidas deal is worth £75m a year, while Chelsea's deal with Nike is worth £60m per season.