Mobile phone giant Vodafone has buried the hatchet with Carphone Warehouse after agreeing to sell its contract mobiles across the chain’s outlets.

Vodafone dumped Carphone as a supplier of contract mobiles in favour of an exclusive deal with Phones4U in October 2006, but has returned to the chain in an increasingly tough and competitive UK market.

Carphone Warehouse continued to sell Vodafone’s pay-as-you-go phones and upgrades, but customers will now be able to sign up for a full range of contracts and broadband services at its 800-plus stores from Tuesday.

Carphone’s chief executive Charles Dunstone said: “This agreement marks a continued strengthening of our relationship and will benefit both businesses and their customers.”