Pepsi will sponsor the New York Yankees after agreeing a five-year deal with the world's most recognisable sports brand.

PepsiCo has secured signage at the new Yankee Stadium, and will be the official soft drink of the team, while the company's Gatorade brand will be the official sports drink. The deal means Pepsi will have a monopoly on soft drinks sold within the ground, which opened with an exhibition game earlier this month and holds more than 50,000 fans. As well as supplying drinks to fans, Pepsi will provide drinks for both the Yankees and visiting teams; Gatorade "hydration stations" will be located in the dugouts and the bullpens, providing branded cups, coolers, ice chests and towels.

"We are very excited about our partnership with PepsiCo. It is a fully integrated relationship - from concessions sales and prominent signage to promotional rights and premium hospitality," said Michael J. Tusiani, New York Yankees senior vice president, corporate sales and sponsorships.

The deal sees Pepsi take over from its greatest rival, Coca-Cola, at baseball's most storied franchise. The Yankees are traditionally the dominant force in Major League Baseball in both revenue and titles, with 26 World Series championships and 39 American League Pennants. They have won more championships than any other North American franchise in professional sports history.

"The Yankees arguably are the most recognisable baseball club in the world and we are thrilled to join them in embarking on a new era. It's a whole new ballgame," said Dave Burwick, senior vice president, PepsiCo North America Beverages. "This is going to be an exciting season and Yankee Stadium will provide the perfect backdrop to the start of our partnership with the Yankees and their fans."

The first regular-season game at the new stadium is scheduled to be played on April 16, when the Yankees host the Cleveland Indians.