Rock on... Bank's Newcastle United deal worth up to £10m

The contract – valued at between 1.5m and a potential 10m – will see the bank remain the main sponsor of the Championship team following a relationship dating back to 2004.

Newcastle-based Northern Rock said it believed the sponsorship contract fitted in with its responsibilities under Government ownership.

Northern Rock – the "good" part of the bank that was spun off from its more toxic loans at the start of the year – said it will only pay out the maximum 10m if Newcastle are playing in the Premier League for the full four years.

The contract, which commences at the start of next season, is also subject to review after two years, added the bank.

Newcastle United are top of the Championship and on course for promotion amid a recent turnaround in fortunes.

Northern Rock said its relationship with the club "represents an important community link".

Northern Rock was taken into public ownership in 2008 after its credit crunch woes sparked the first run on a UK bank in more than a century.

UK Financial Investments (UKFI), the Government arm charged with looking after State-owned bank assets, said it was not involved in the decision to renew the club's sponsorship.

"UKFI does not get involved in operational issues and this was an operational issue," said a spokesman.