RETAILER Sports Direct is expanding Down Under in a deal with an online discount firm.

Sports Direct will enter Australian and New Zealand markets for the first time after signing a partnership with MySale.

The chain, founded by Newcastle United owner Mike Ashley, will open three stores in Australia and one in New Zealand.

Bosses say it will allow the firm to target MySale's 12 million customers.

The deal comes a month after Sports Direct bought a 4.8 per cent stake in MySale worth about £15m.

The Australian and New Zealand websites will launch later this year, with Sports Direct planning to start opening stores at the same time.

Dave Forsey, Sports Direct's chief executive, said: "This will give us access to tremendous markets in Australia and New Zealand.

"It will be great to enter these countries, where sport is a way of life, and I've been really impressed by MySale and look forward to working with them."

MySale is run by Jamie and Carl Jackson, who set up the business seven years ago in Sydney.

Jamie Jackson, vice-chairman, said the deal made sense for both businesses.

He added: "Sports Direct showed its confidence in our business when it took a stake in us.

"This partnership is the logical next step in the development of our relationship."

The move comes just days after Mr Ashley finally won approval from Sports Direct shareholders for a hugely generous pay award.

The controversial scheme, which drew criticism from the Institute of Directors, will see 25 million shares issued to Mr Ashley, Sports Direct executives, and about 3,000 senior staff, including shop managers.

The payout is worth about £180m, though Mr Ashley's pot has not been revealed.

Shareholders had blocked previous plans to pay the bonus.

Later this week, Sports Direct is expected to report increased underlying earnings of £327.1m for the year to April 14, with bosses hailing European acquisitions and rising online sales.