Ryan Giggs press conference
Manchester United legend Ryan Giggs in front of a Nike boardGetty

US sports brand Nike has confirmed that it will end its current association with Premier League challengers Manchester United because "a renewed contract did not represent good value".

The Old Trafford team has received £23.5m ($40.2m, €29.6m) per season from Nike for its affiliation with the brand, but it was rumoured that the giants of English club football had been vying for a new contract closer to £60m, as it looks to overhaul a squad that failed to live up to expectations last season.

Nike said in a statement: "Any partnership with a club or federation has to be mutually beneficial and the terms that were on offer for a renewed contract did not represent good value for Nike's shareholders. We look forward to a successful final season with the club."

Adidas are in the running to replace Nike. An Adidas spokesperson told IBTimes UK that a deal with Manchester United would be something that it is definitely interested in as "it is one of the biggest clubs in the world".

"Obviously our names are going to be touted around when its speculated and I think that everyone knows that we're in the mix, but there is nothing necessarily to confirm at this stage," said the Adidas representative.

United are looking for a huge kit deal to fund an overhaul of the playing staff, following a disastrous season which saw the perennial title contenders slip to seventh in the Premier League.

Netherlands manager Louis van Gaal has already been appointed as the new manager following the sacking of David Moyes and the Dutchman will need every penny available to lure big-name transfers.

Southampton left back Luke Shaw and Athletic Bilbao midfielder Ander Herrera have already signed whilst Bayern Munich star Toni Kroos, Real Madrid's Angel di Maria and Juventus midfielder Arturo Vidal have been heavily linked with Old Trafford.