The deal is the final stages of negotiated by United States Olympic and Paralympic Properties, the joint sales venture of Los Angeles and the United States Olympic Committee (USOC) launched in January, Sports Business Journal reported. 

It is reported that the deal with include outfitting the American teams competing at Los Angeles 2028, volunteer uniforms and merchandise that will be sold to the public. 

The deal will be the first step towards the sponsorship target of $2.5 billion (£2 billion/€2.2 billion) set by Los Angeles 2028, Sports Business Journal claimed.

Some industry experts have estimated that Nike could pay as much as $200 million (£150 million/€175 million) to be a sponsor because of the merchandising, licensing and promotional potential of a deal with Los Angeles 2028 - the first summer Olympic Games to be held in the US for 32 years. 

Nike has been a USOC footwear and apparel sponsor since 2005, and its current agreement, believed to be worth about $4 million (£3 million/€3.5 million) annually, runs until the end of next year. 

The company already has deals Major League Baseball and the National Football League until 2030 and USA Track & Field until 2040.