Bank of Ireland is set to be named as the new sponsor of the Leinster rugby team in a three-year deal worth about €1.1 million annually to the team, writes Ciarán Hancock.

The deal will take effect from the beginning of next season.

Bank of Ireland is believed to have beaten car manufacturer Peugeot in a two-way race to win the sponsorship. The bank already sponsors the Ulster and Connacht teams.

Bank of Scotland (Ireland) recently stepped down as Leinster's sponsors after six years.The sponsorship was much sought after. Leinster currently tops the Magners League and will play Wasps away this weekend in the quarter-final of the Heineken Cup.

The team is captained by Ireland captain Brian O'Driscoll and is set to play its home games next season at the RDS in Ballsbridge in Dublin.

Earlier this week, Toyota agreed a €5 million deal with Munster to extend its sponsorship by three years.