It has been announced that supermarket giant Morrisons is to team up with online giant Amazon to supply food to its Amazon Prime Now and Amazon Pantry service customers.

The new facility which will be available later this year, will supply items such as frozen, fresh and non-perishable goods.

Morrisons chief executive, David Potts, said: "Today's agreement is built on Morrisons unique strengths as a food maker. The combination of our fresh food expertise with Amazon's online and logistics capabilities is compelling.

"This is a low risk and capital light wholesale supply arrangement that demonstrates the opportunity we have to become a broader business. We look forward to working with Amazon to develop and grow this partnership over the coming months."

As well as Amazon, Morrisons has also been in talks with Ocado so it can grow its online retail offer and will be taking a space in Ocado’s new customer fulfilment centre in Erith.

Commenting, Morrisons said: “The amended agreement is subject to detailed terms being agreed and will only proceed if it enables Morrisons to achieve profitable growth online.”