Wirral Council tonight is expected to renew its sponsorship agreement with Tranmere Rovers FC.

The council's new cabinet will study a report recommending the authority continues its financial support for the football club.

The authority sponsored Tranmere to the tune of £120,000 last season, but this will need to increase inline with inflation to between £123,000 and £126,000 from July.

The now Labour-led cabinet will vote on the issue when it meets later this evening.

Newly-appointed leader of the council, Cllr Steve Foulkes, said: "Sponsorship of Rovers has enjoyed all-party support in the past as we believe the club makes a significant contribution to Wirral.

"As the new administration, we are still getting to grips with the many issues that need to be addressed, and some items for discussion at cabinet may be adjourned to a later date.

"But Rovers deserve an early answer on this, and I will be supporting a positive decision."

Sponsorship cash is performance based and will rise or fall in line with Rovers' fortunes.

A clause in the contract says there will be increased or reduced payments in the event of promotion or relegation.

If the club is relegated to League Two, sponsorship will fall to £101,300, while promotion to the Championship would see the figure rise to £135,000.

The report highlights sponsoring the club as being a good way of promoting Wirral as a "place to live, work, as a great place to visit and stay and that it shows Wirral locally in a positive way which enhances the corporate identity of the authority."

It also recognises Rovers as "an important local business which employs a significant number of people."

The document says sponsorship means the authority is entitled to a presence at key matches throughout the season, which "can be used to help further develop the relationship between the council and local businesses and promote Wirral to potential investors."

The council has sponsored Rovers since the 1989/90 season.

Sponsorship was originally agreed to recover a loan given to the club in 1983, which was repaid in full in 1998.