Paterson Arran will produce rough, black pepper, and seeded varieties of oatcakes for Asda.
The supermarket group said that the rough and black pepper varieties would be available in about 500 stores around the UK. The seeded variety will be available in about 200 outlets.
A spokeswoman for Asda noted this supply deal demonstrated the popularity of the Scottish brand south of the Border, and said the supply deal would be worth £800,000 to Paterson Arran over the next year.
On its website, Paterson Arran says: "We have been perfecting the oatcake since 1895, when John Paterson first ventured out, in a horse-drawn van, to sell as many as his wife could bake."
While noting it still bakes its oatcakes slowly, using an 84 per cent oat recipe, it adds: "There's also a modern twist to our oatcake story. We switched from using palm oil to a more orangutan friendly and sustainable olive oil in 2002.
"And now we've gone one step further and moved to sustainable high-oleic sunflower oil to make an even healthier, lower saturated fat, product."
Susanna Hassard, Asda's regional buying manager for Scotland, said: "Chosen By You Scotland is a huge success for us, and we are delighted to be launching a range of oatcakes with the support of Paterson Arran.
"We regularly talk to our customers about what they want to see in our stores and locally produced products always come out on top. By extending our own range, we are demonstrating that we have listened to our customers and we hope they enjoy tucking into the new healthy and tasty oatcake range."
Robert Gormley, account manager at Paterson Arran said: "It's good to see that Asda is continuing to invest in providing a range of products full of Scottish provenance and taste."
Asda announced in March that Paterson Arran would, under a deal worth an estimated £50,000 this year, supply four varieties of its newly launched chutney lines across 48 stores in Scotland.
The Livingston-based company, which produces oatcakes and shortbread at its head office site, makes relishes, chutneys, marmalades and preserves at Lamlash on Arran.