Carphone Warehouse is to start selling Vodafone UK contracts in its stores next week after a three-year hiatus.

Vodafone signed an exclusive deal with Carphone rival Phones 4U in October 2006, in an effort to change distribution practices in the UK.

But the telecommunications company admitted the plan had failed, leading to it negotiating new terms with Carphone Warehouse.

Group chief executive Charles Dunstone said: “We have always set out our stall to offer the widest possible choice of handsets, networks and tariffs and our new agreement with Vodafone will bring exciting new products and services to our stores and gives our customers the best possible choice in the marketplace for their communication needs.”