The Catalan club confirmed the week long speculation of an extension to their relationship in a statement saying: "FC Barcelona and Nike have extended their current sponsorship deal, which was due to end on 30 June, 2018."
"The long-term agreement is a landmark in global football and builds upon a highly successful partnership."
Club president, Josep Maria Bartomeu, added: "We are excited by this new agreement and are confident we will be able to celebrate continued sporting successes together."
The La Liga champions added that details of the contract would be finalised at their next general assembly.
While the exact worth of the deal has yet to be official confirmed, Spanish newspapers Diario Sport and Mundo Deportivo have both reported that the deal could be worth up to £107m per-season and would run until 2026. However Sky Sports reported the deal was worth £140m per season.
If confirmed the £140m figure would be highly significant because it gives Barcelona the most lucrative kit manufacturing deal in the world, eclipsing Adidas' 10-year deal with Real Madrid which is understood to be worth £106m per-season.
Competition between the two sports names has intensified in European football recently with both brands applying a different model to their sports sponsorships. Adidas have sponsored fewer properties in favour of channeling more of its marketing efforts into promoting its star players like Paul Pogba and Gareth Bale alongside pushing street football. It has also moved to bring its top teams in Manchester United, Real Madrid, AC Milan and Juventus under one umbrella strategy for the first time.
Nike meanwhile has been looking to extend its stronghold in kit sponsorships and recently swooped in on Premier League club Chelsea who announced that they would be exiting their relationship with the German sports brand six-years early.