MORRISONS is set to expand its online grocery operations after reaching a new deal with provider Ocado.

The Bradford-based supermarket said the renegotiated deal would enable Morrisons.com to grow profitably across Britain using Ocado's technology.

Morrisons has re-negotiated parts of the original contract with Ocado, including lifting restrictions on store pick arrangements enabling Morrisons to fulfil online orders anywhere in Britain, including areas not currently covered by Morrisons.com.

The new deal also cancels a profit share agreement and reduces the research and development fee .

Morrisons already announced that it will take space in Ocado's new customer fulfilment centre in Erith, South East London, allowing millions more customers to shop with Morrisons.com.

Morrisons.com will also sell thousands of non-food items, currently available from Ocado, giving customers more access to many well-known brands.

David Potts,Morrisons chief executive, said:"The new investments in online growth are further examples of Morrisons building a broader business and will allow millions more customers all over Britain to enjoy Morrisons good quality fresh food and great value for money.

"As food maker and shopkeeper, we continue to 'follow the customer' and move towards achieving capital light, profitable growth online."