Lloyds TSB Bank have announced a multi-million pound sponsorship of the Five Nations Championship. The English financial institution has paid £12 million to secure the sponsorship rights for two years, 1999 and 2000, with an option of a one-year extension, when Italy are expected to join the competition. They have also managed to close a deal on this season's Five Nations championship, giving them title sponsor rights.

The financial package is expected to be divided equally between the home unions. A potentially tricky situation for the IRFU was averted when Irish Permanent PLC, sponsors of both the national side and Ireland's home games in the Five Nations, outlined their willingness to stand aside in terms of backing Five Nations games at Lansdowne Road.

They will continue to sponsor the Irish team in all matches, but, in terms of match sponsorship, they will enjoy rights for only those outside the Five Nations Championship, until their deal with the IRFU runs out in two years.

Enda Hogan, the group head of public affairs for Irish Permanent PLC, said: "We are delighted to be able to facilitate the Irish Rugby Football Union while still maintaining major ties with the game here.

"The Irish Permanent PLC and rugby have grown together in the past number of years and I am confident that the continued association will benefit both parties. The two Irish Permanent internationals for the 1997-98 season will be Ireland v New Zealand, on Saturday, November 15th, and Ireland v Canada on Sunday, November 30th."

The IRFU were understandably delighted with the new financial windfall that would offer further expansion in marketing terms.

The IRFU president, Niall Brophy, in a prepared statement, said: "The announcement today by Lloyds TSB Bank that they will, as part of their overall sponsorship of the Five Nations Championship, sponsor Ireland's home matches in the championship is a major boost for Irish rugby.

"Lloyd's TSB have indicated the intentions not simply to be match sponsors but, more importantly, partners with the IRFU in the development of rugby here in Ireland. Our Five Nations Championship matches are indeed the shop window of Irish rugby and, together with Lloyds TSB, we intend to further strengthen the appeal of the entire production on the day.

"The annoucement, coming as it does in the same week as AIB revealed final details of their sponsorship of the All-Ireland League and Irish Permanent reaffirmed their sponsorship of the Irish team and Ireland's home matches outside the Five Nations Championship, is a positive indicator of the confidence in which Ireland's rugby future is held.

"We are very pleased that Irish Permanent PLC will be continuing their strong association with Irish rugby through the Irish team and, of course, the sponsorship of Ireland's home international fixtures outside of the Five Nations.

"We look forward to many more years partnership with Irish Permanent PLC. The combination of today's announcements is a major vote of confidence in Irish rugby and reflects very positively to the union's approach to the promotion of the game in Ireland."

In addition, Lloyds TSB will be the official bank of the next Rugby World Cup in 1999 and will be the presenting sponsor of the World Cup qualifying groups involving Ireland, England and Scotland. These groups stage play-off matches next autumn.

Allan Hosie, the chairman of the Five Nations Committee said: "This is an exciting new sponsorship venture for all countries involved in rugby's oldest tour nament and further underlines the ever-growing stature of the event."

England coach Clive Woodward has abandoned plans to name an expanded Test match squad this week. He will select a squad of about 40 at the start of next week.