Real Madrid, the Spanish soccer giants, have finalized their new sponsorship deal with German car brand BMW.

BMW has taken over from rival Audi as the LaLiga club’s new automotive sponsor and has been given the designation of its sustainable mobility partner.

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Real Madrid and Audi, which had been partners since 2003, failed to agree terms on a renewal at the end of last year.

The brand is reportedly scaling back its soccer sponsorships to focus on its agreement with German giants Bayern Munich, of which it owns 8%.

Under the agreement with BMW, the manufacturer will provide the Real Madrid men's and women's soccer and basketball first teams, as well as their coaching staff, with electric vehicles.

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The two parties will also collaborate on initiatives in the domains of future mobility, sustainability, and diversity, as well as establishing a collaboration center for sustainability.

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In addition, the UEFA Champions League winners and BMW will work on specific initiatives that contribute to the sustainable development of the renovated Santiago Bernabéu stadium.

Manuel Terroba, president of BMW Group Spain, said: "Real Madrid not only represents the world's leading sporting institution, but also an organization in constant evolution.

“It also has a firm commitment to sustainability, solidarity, diversity, and a winning spirit. This makes the club the perfect partner to address the challenges of the present and the future.”

BMW becomes a second-tier commercial partner of the European champions alongside the likes of Hankook, Mahou, EasyMarkets, EA Sports, ADOBE, Cisco, and Hugo Boss.

Real Madrid’s top-tier partners are kit supplier adidas and shirt sponsor Emirates Airline.