British telecoms and retail group Carphone Warehouse will offer contracts from Vodafone from next week in its 820 stores, ending a three-year dispute, Vodafone said on Thursday, confirming media reports.

Vodafone switched to an exclusive deal with Carphone rival Phones4U in 2006. Meantime, Vodafone customers have been able to upgrade phones and purchase pay-as-you-go handsets at Carphone Warehouse, but not to buy Vodafone contracts.

Vodafone also said on Thursday it was extending its partnership with Phones4U to a multi-year agreement covering both mobile phone and mobile broadband connections.

The company said it now would have a total of 1,650 Vodafone, Carphone Warehouse and Phones4U stores offering Vodafone contracts.

Carphone shares traded down 1.2 percent at 157.75 pence by 1106 GMT (7:06 a.m. EDT), underperforming a 0.8 percent-lower European telecoms index. Vodafone was down 1.8 percent at 117.3 pence.

(Reporting by Victoria Bryan and Georgina Prodhan)