NORTHERN Rock has confirmed it will continue to sponsor Newcastle United after signing another four-year deal worth up to £10m.

The contract will see the bank remain the main sponsor of the Magpies following a long-standing relationship dating back to 2004.

The Newcastle-based company said today it believes the sponsorship contract fits in with its responsibilities under Government ownership.

Gary Hoffman, chief executive of the bank, said: "We remain mindful of our responsibilities under Government ownership and only consider those advertising and promotion channels that deliver a high return on investment and good strategic fit.

"We believe that the sponsorship deal with Newcastle United provides both of these."

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 is playing in the Premier League for the full four years.

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

Northern Rock said its relationship with Newcastle United represents an important community link.

Brand awareness and promotion are important elements in the continuing development of the company, said Mr Hoffman.

He added: "The new contract will help keep the Northern Rock brand in the public eye and reinforce our strong roots in the North East region, a community we are immensely proud to support."

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.

The group was split in two on January 1, with the good bank hived off, comprising about £19bn in savings and £10bn of mortgages.

It is set to be put up for sale into the private sector, while the so-called bad bank is expected to remain in public ownership.

Northern Rock has also maintained its sponsorship of the Newcastle Falcons rugby and Newcastle Eagles basketball teams since nationalisation, although these and all other sponsorships are under review.

It has already axed previous deals with county cricket teams Middlesex and Durham since mid-2008.