FC Barcelona is close to reaching an agreement with Nike to renew their kit supplier deal after months of tense negotiations.

Having been with the Swoosh brand since 1998, the reigning La Liga champions have previously voiced dissatisfaction with the current terms of their deal, believing it to be undervalued compared to their market value, as well as citing supply and quality issues from Nike.

Nike has proposed a new and improved deal to Barcelona, which would involve paying the Catalan club €100 million ($107 million) per season, with the potential to reach €120 million ($128 million), according to Spanish journalist Ferran Correas.

The American sportswear giant reportedly did not want to lose Barcelona as one of their clubs, and they are hoping to seal the deal next week.

Barcelona currently receives €85 million ($91 million) from Nike to produce their kits and sell merchandise.

The club previously considered a lucrative deal from the German brand Puma, which offered roughly the same amount as the latest offer from Nike.

Additionally, Barcelona explored the possibility of producing and distributing its own kits to retain all of the revenue.

Barcelona's financial woes could be over due to new Nike deal

In addition to the increased yearly payout, Barcelona would also receive an additional €100 million renewal bonus upon signing the deal.

The bonus would assist Barcelona in returning to the 1:1 rule, enabling them to allocate all of their revenues towards signings.

La Liga had previously imposed a 1:4 rule on Barcelona due to its financial difficulties, restricting it to spending only 25% of its revenue on signings.

However, this has since been adjusted to the current 1:2 ratio (50%) for the current season.