The private postal operator will handle the mailing for up to 180m items a year for the retail giant, including the Clubcard scheme that encompasses 15m households as well as Tesco Bank collateral.

TNT Post, which was awarded the contract following a competitive process from the incumbent DHL, said it will aim to develop the retail group's mailing capabilities throughout the partnership.

TNT Post chief executive Nick Wells said: "Winning Tesco as a client is a great coup for TNT Post and we are proud that our robust operational capability, combined with excellent customer service, and of course value for money, shone through in the tender process.

"We are looking forward to working in partnership with the Tesco team to develop and enhance their mailing capabilities and communication with customers."

The Tesco contract win is the latest for TNT Post, which now handles more than 3.5bn items per annum for clients that include Barclays, BT, Centrica, Lloyds and Sky.

Elsewhere, TNT Post has announced that it is to trial deliveries in West London next month in a bid to rival Royal Mail's 'final mile' service.

The move to deliver to homes and businesses follows a successful test period in Liverpool last year but according to Wells, the company will continue to challenge Royal Mail's VAT exemption status before the service becomes permanent.

"We want to make a significant investment in infrastructure and create thousands of jobs in the UK, but the government is doing little to help us to achieve this," he added.