mutual agreement.
The contract will now end in June 2006, ahead of the contract end date of June 2011.
Chelsea will make a payment for termination of £24.5 million in June 2006.
Umbro will continue to be the kit sponsor during the club's Centenary season
2005/6 when a new Centenary home kit and celebration products will be launched for the occasion. These products will be unique to the Centenary year.
Chelsea Chief Executive Peter Kenyon said: "The centenary season should be a great celebration for everybody connected with Chelsea and we look forward to Umbro sharing in that.
"They have made a major contribution to the Chelsea of today. However we believe this decision will help us achieve our strategic long-term goals in the future."