LONDON (AP) — Nationalised mortgage lender Northern Rock PLC said yesterday it has signed a new four-year sponsorship deal with Newcastle United football club, worth up to £10 million ($16 million).

The deal extends Northern Rock's relationship with its hometown club as both target renewal — the bank is on the hunt for a buyer to return to the private sector while League Championship leader Newcastle is closing in on promotion to the Premier League after a year in the second tier.

The total value of the contract will vary between £1.5 million and £10 million, depending on Newcastle's performance on the pitch.

The maximum value will only be realised if the team fulfills expectations and is promoted back to the Premier League — and stays there for the whole of the four-year period beginning next season.

Newcastle-based Northern Rock, which was taken into public ownership in 2008 after it became the first major British victim of the global credit squeeze, said that the agreement represented a good deal for taxpayers.

Northern Rock chief executive Gary Hoffman added that it was "an important community link" as he defended the decision to renew the sponsorship deal despite being owned by the government.

"Brand awareness and promotion are important elements in the continuing development of the company," Hoffman 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," he added.

Northern Rock was split in two at the beginning of this year, forming a "good" bank that is being readied for a return to the private sector and a "bad" bank that is charged with repaying the taxpayer. Monday's deal is between the "good" bank and Newcastle United. Reported suitors for the bank include National Australia Bank and Virgin Money.

Newcastle United's managing director Derek Llambias said extending the sponsorship agreement — Northern Rock's logo has adorned Newcastle's Adidas-manufactured jerseys since 2004 — would help the club achieve its goal of a return to the Premier League next season.

"This alliance underpins the desire of two of the region's most well known names to continue to work together over the next four years," Llambias said. "Newcastle United's aim is to return to the Premier League next season and we believe that collaboration will help both companies achieve our respective goals in the local, national and international marketplace."

Newcastle are currently at the top of the League Championship table, leaving them well positioned to achieve promotion.