Adidas and Puma are understood to be in a head-to-head fight to land a major sponsorship deal with future F1 incumbent Audi.
The German manufacturing giant will make its F1 debut in 2026 after being attracted to the sport by new power unit regulations.
Audi has already confirmed a strategic and technical partnership with oil and gas giant BP which will serve as the team's fuel supplier.
It was also announced that Castrol – BP's lubricant business – will produce lubricants for Audi's V6 turbo engine and EV fluids for the electric motor and battery.
Behind the scenes, the team has been working on additional partnerships, which has resulted in a battle between global sportswear giants Adidas and Puma.
SportBusiness has reported that Audi is close to partnering with Adidas as the team's sports apparel sponsor, which would be its second collaboration with an F1 outfit as the Germany-based company joins forces with Mercedes next year.
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However, RacingNews365 understands that Audi has held discussions with Puma, which also partners with Ferrari, and they remain in the running to land the $30 million-per-year deal.
Adidas is understood to be in pole position, however.
Earlier this year, Adidas chief executive Bjorn Gulden explained Adidas' reasons for entering into F1 for the first time.
Speaking to German publication Bild, Gulden said: “The three races in the United States have brought great visibility and interest to this sport, even in the US, and Formula 1 is a big business.
"Most of the contracts in F1 regarding technical sponsors expire in 2026. We are talking with several teams, and the plans are so advanced that I can’t say anything. We will do so as soon as we can."
Adidas also tried to partner with Red Bull only for the team to continue this season with Castore, which also has an agreement with McLaren.
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