Madonna has confirmed media speculation that she is partnering up with promoters Live Nation in a deal estimated to be worth US $120 million.

The 49-year-old has confirmed that she has signed the 10-year deal to become the founding artist in the firm's new Artist Nation division, in a deal she has deemed is “well deserved.”

In a statement confirming the agreement on Tuesday Madonna told the press: "The paradigm in the music business has shifted and as an artist and a business woman, I have to move with that shift.

"For the first time in my career, the way that my music can reach my fans is unlimited. I've never wanted to think in a limited way and with this new partnership, the possibilities are endless. Who knows how my albums will be distributed in the future?

"That's what's exciting about this deal - everything is possible. Live Nation has offered me a true partnership and, after 25 years in the business, I feel that I deserve that."

The mother-of-three will receive a combination of cash and stocks in the multi-media group and in return she will give executives at Live Nation the rights to sell three studio albums as well as promote concert tours and license her name.