Budweiser are set to be named as the new sponsors of the FA Cup next month.  

The American beer firm will begin its sponsorship at the beginning of next season after E.on decided against renewing its deal with the Football Association.

The deal should be worth £8 million a year to the FA but the marketing news is thought to have incensed rival lager firm Carlsberg, who already had a secondary sponsorship deal with the FA Cup.

According to The Daily Mail, the Danish brewers will now be expecting a severance cheque worth around £8 million in order to compensate for the breach in exclusivity clauses.

The FA already had to pay out severance to Fiat after they signed rival car firm Vauxhall as partners of the England national team and will be keen to avoid a similar situation following this new agreement.

E.on enjoyed a five-year sponsorship of the competition, which was this year won by Manchester City in a tense Wembley final last weekend.

It is thought that the FA were relieved to agree a deal worth anywhere near the £9 million a year paid to them by the energy supplier.

Marketingmagazine.co.uk report that electrical firm LG were also in discussions over sponsorship opportunities. 

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