Sainsbury has confirmed it has struck a deal with Carphone Warehouse to offer cut-price calls from fixed line phones.

Under the deal - which builds on Sainsbury’s current mobile phone offering - Carphone Warehouse will be responsible for all aspects of customer management.

The new initiative - due to launch later this year - follows rival Tesco, which is in the process of establishing Tesco Telecom.

Two years ago the supermarket group launched Sainsbury's One - now Sainsbury's Mobile - which checks a customer's calls against every standard tariff on Britain's four mobile phone networks and charges the lowest price available.

Carphone Warehouse launched its own Talk Talk offering last month, claiming to cut the cost of landline calls by up to 30%.