Gillingham Football Club and Kent Reliance Building Society have settled their differences over a shirt sponsorship deal.

Agreement was finally reached on Thursday when both parties agreed a revised funding deal for the next two years.

Kent Reliance had argued that the club’s relegation to League 2 meant that the value of the sponsorship deal should fall. But club chairman Paul Scally was reluctant to concede any significant loss of revenue from the sponsor.

It is understood that the society was prepared to pull out of the deal if no agreement could be reached. But Kent Reliance has confirmed that it has now achieved a "win-win" deal for both.

"We have reaffirmed the contract for the next two years and possibly longer," said chief executive Mike Lazenby. "We’ve sorted our differences and we’ve got a good basis to go forward. Both siders are happy with the outcome."

Mr Lazenby declined to say how much money was involved. But industry sources suggest that it is likely to be more than the £55,000 average annual shirt sponsorship for League 2 teams, and could be more than the League One average.