The contract will now end in June 2006, ahead of the scheduled June 2011 end date.
Chelsea will make a payment of £24.5million to the sportswear firm, which manufactures the club’s replica shirts, in June 2006.
Umbro will continue to be the kit sponsor during the club's Centenary season in 2005/6 when a new Centenary home kit and celebration products will be launched.
Cheshire-based Umbro makes kit for 150 teams worldwide, including the England national side.
Profits in the half-year to July 2004 were £16.55million, a 51 per cent increase on the same period in 2003.
