Rangers and Sports Direct have reached an agreement in a long-running dispute over a controversial merchandise deal.

Chairman Dave King announced on Wednesday that the club and Mike Ashley's firm had "terminated all prior arrangements" between them.

He claimed the new deal would see Rangers receive "by far the majority of net profits from the Webstore and Megastore", as well as an equal share of profits for merchandise sold through Sports Direct.

Under the original arrangement, Rangers claimed they received around 7p in every £1 spent on club shirts.

Since the move, brokered by former chief executive Charles Green, some fans groups had urged a boycott of official merchandise.

Mr King said he believed the deal, which has no fixed term, would ensure that any money supporters spent on their products would be "hugely beneficial" to the club.

During a media conference, he stated the move signalled an end to the legal dispute with Sports Direct, as well as a seven-year notice period on the initial arrangement the club triggered in February 2016.

He also stated "interest free loans" from himself and other existing investors had paid for the large overhaul of the playing squad by new manager Pedro Caixinha in recent months.

At the time the joint venture was revealed in August 2012, Mr Green said the move would "drive revenues" and see profits "reinvested back into the team and the club."

Rangers and a company within the Sports Direct group had been locked in a battle in the High Court in London over the agreement.

The arrangement was done through the creation of a jointly owned company, Rangers Retail Limited. This entity would be wound down, Mr King said.