Australian supermarket operator Woolworths has said it is close to reaching a decision on the successful bidder for a contract to supply own-brand milk to the chain.

Australian dairy firm National Foods has held the lucrative contract to supply the chain with more than 200 million litres of milk since 2002, but its contract expires in September, reported the Australian Associated Press.

Woolworths has said it has been looking at tenders but has not given details on who has submitted a bid and when the final decision will be revealed. National Foods has said it has put in a tender for the contract.

There has been some speculation that Woolworths may offer the contract on a state-by-state basis rather than nationally.