Accrington Stanley and hard-up Hyndburn Council have ended a £45,000 three-year shirt sponsorship deal - after less than a year.

But the club is expected to sign a larger deal with a retailer and talks with three firms are well under way.

The club and council say the decision is mutually beneficial.

The club is confident it can obtain more income from a new sponsor. And the council, which uncovered a £1.8million deficit last year, says it can divert the remaining £30,000 elsewhere, possibly to area councils.

Hyndburn Council's name has been featured on red Stanley shirts this season, raising the area's profile around the country.

But a Labour councillor believes the deal should never have gone ahead for two reasons - council tax payers' money should not support football clubs, and the borough could disappear under the Government's regional assembly plans.

Hyndburn Council leader Coun Peter Britcliffe said: "The council has been very proud to see Accrington Stanley wearing its name this season.

"Yes, there have been one or two whingers and critics. But football fans know there there are always some people who moan.

"I believe our sponsorship has been perhaps been the best £15,000 Hyndburn Council has spent. It has provided soccer schools at different venues and, as a result of the club's magnificent cup run, great publicity .

" It is all a far cry from 1999, when I first became council leader and relations with the club were at a very low ebb. The Conservative group felt it very important to develop relations with Stanley which is a major jewel in Hyndburn's crown.

"Now, it's time to move on and strengthen our long-term commitments. Stanley chairman Eric Whalley and I have committed ourselves to a long-term deal beneficial to the club and area.

"The shirt sponsorship will be taken over in a major deal to be announced shortly. That will benefit the club and the council, at a time when we are doing everything possible to keep council taxes low ."

Under a long term commitment, the council will sponsor two home games per year, costing around £1,000 annually, and soccer schools will continue. And it will work with Stanley to ensure training facilities at Wilson playing fields in Clayton-le-Moors are available for when the club goes full-time professional next season.

Club administrator Rob Heys, speaking on behalf of his chairman, said the new arrangement was a win-win situation. But he acknowledged the effect of a short sponsorship deal on fans, who may feel pressured to replace their £35 tops next season.

"We're sorry we are changing the shirts. However, next season's tops will have the same design but just have a different sponsor's name."

However critical Labour Coun Tim O'Kane said: "Local businesses and large firms should sponsor football clubs, not councils.

"I welcome this news. This deal should have ended sooner. It was absurd."