Manchester United is to open a major store in the centre of Dublin to sell merchandise such as replica kit, videos and memorabilia. The outlet will be located in the ICS building at O'Connell Bridge, one of the most high profile buildings in the city.

The club frequently operates its stores on a franchise basis but in this case it will run it directly from Manchester. It is likely to be paying an annual rent of over £350,000 for four floors of the ICS building, totalling nearly 20,000 sq ft. The basement will be used as a restaurant.

Manchester United has not yet completed contracts to lease the building. However, Willie Dowling of Gunne estate agents, who is advising the owners, Treasury Holdings, confirmed yesterday that the building was "off the market as we are in negotiations with a UK plc." ICS is not due to vacate the block until the end of April.

News of the pending deal comes in the same week as the Red Devils have emerged as the richest football club in the world with a turnover of almost £88 million sterling.

Treasury Holdings is awaiting planning permission to change the four lower floors of the ICS building from office to retail use. If the city planners approve of the outlet, then it could open up new retail opportunities in both Westmoreland Street and D'Olier Street. At present, most pedestrian traffic in Westmoreland Street is confined to the western side of the street next to Temple Bar.

Treasury Holdings has also sought planning permission to add an additional floor to the ICS building and to use the top floors for 15 luxurious apartments and penthouses. The units will be among the most expensive in the city centre when they are sold later this year. Most of the apartments will offer superb views over the inner city.

United, which is the subject of a £635 million sterling take-over from Rupert Murdoch's BSkyB, makes more money from its commercial activities such as replica shirts and corporate hospitality than from gate receipts. It has the most valuable sporting brand worldwide, dwarfing its giant Spanish and Italian soccer rivals. However, merchandise sales over the past year were down from £29 million sterling to £24 million in part due to an accounting change but also because of the impending launch of a new kit.

Manchester United merchandise is also sold through franchise outlets at Arnotts in Henry Street and Dublin Airport.