Levi Strauss has confirmed it wants to use supermarkets to sell a new range of discount clothing.

It comes despite a bitter legal battle with Tesco over the right of the chain to sell cut-price Levis, sourced from the so-called "grey market" outside Europe, without the consent of the jeans maker.

Tesco eventually lost a court ruling although it promised to continue stocking designer brands such as clothes, fragrances, sportswear and champagne at knock-down prices by purchasing them within the EU - a practice still allowed under trade rules.

Levi Strauss says it plans to launch a "value" range of clothes for adults called Signature, including jeans for about £25 a pair - at least £20 cheaper than ordinary Levis.

Tesco said it has had an initial conversation with its former adversary about stocking the range.

Asda, whose parent company Wal-Mart will sell Signature clothes in its US stores from this summer, is also understood to have held early talks.

Levi Strauss has decided to expand the range to France, Germany and the UK from early next year to tap into the growing demand for good quality discount clothing which has been spearheaded by supermarkets.