Dave King's dispute with Mike Ashley is over after the Rangers chairman announced a deal has been struck with the Sports Direct businessman.

The Ibrox chief called a surprise press conference on Wednesday to confirm a new kit deal with Ashley's retail firm has been agreed.

It sees the current seven-year merchandise agreement - which reportedly earned Rangers seven pence from every pound spent in club shops - ripped up and a new 12-month contract put in place.

King hopes the deal will encourage supporters to end their kit sale boycott and provide a major financial boost as Rangers aim to take on last season's runaway Ladbrokes Premiership winners Celtic.

A club statement said: "For obvious reasons it is not the practice for the details of commercial arrangements to be made public.  However, in view of the publicity surrounding the previous agreements and the resultant boycott by supporters of kit purchases we consider it appropriate to give supporters some insight into the new arrangements.

"The new arrangements represent a fresh start for the Rangers Megastore, the relaunch of the Rangers Webstore and the sale of Rangers kit and products throughout SD’s stores.

The Herald:

"The financial arrangements between the parties are transformed.  TRFC will now receive by far the majority of net profits from the retail operations at the Megastore and Webstore together with an equal share of all net profits from sales through SD. TRFC will also obtain a priority dividend on the winding up of RRL.

"The new deal will deliver real value for TRFC and SD. Supporters now have certainty that any money they spend on Rangers products will be hugely beneficial for the Club. SD will benefit from the increased sales and from the opportunity of demonstrating the part its retail skills can play in building and commercialising the Rangers brand which was always SD’s intention.

"Both parties are delighted to achieve a successful resolution to the issues that have previously marred the relationship between them and bring an end to the protracted and costly litigation.

"TRFC and SD hope that the new arrangements will be long standing but there is no longer a fixed commitment on that front. We will rely on our combined commercial performance and drive to cement the relationship going forward."