British supermarket chain Morrisons has signed a new deal through which it is set to supply wholesale products to convenience retailer McColl's from next January.

Through the contract, Morrisons intends to increase wholesale supply sales to more than £1bn in the near future.

The agreement will see the revival of the Safeway brand, which was acquired by Morrisons in 2014.

Under the current deal, Morrisons will supply Safeway products and other brands to 1,300 McColl's convenience shops and 350 newsagents across the UK, becoming the retailer’s sole supplier.

"Wholesale supply will help make us a broader, stronger business."

Morrisons chief executive David Potts said: "This new partnership is a further example of Morrisons leveraging existing assets to access the UK's growing convenience food market in a capital light way. Wholesale supply will help make us a broader, stronger business."

McColl's will also have exclusive access to Safeway products for one year.

The Safeway product range includes more than 400 fresh and frozen food products, which are made in Morrisons' 17 UK-based food manufacturing sites.

By the end of next year, Morrisons expects total annualised wholesale sales, including tobacco, to be more than £700m.

Morrisons operates more than 500 stores, in addition to an online home delivery service that was launched in 2014.