In another move to expand its international presence, Gap Inc has signed a deal with Mexico's leading department store chain to sell Gap brand merchandise in a franchise "store within a store" concept.

The agreement signed by the San Francisco company with Distribuidora Liverpool will begin selling products in the spring of 2009.

It replaces a previous wholesale arrangement between the two companies during which Liverpool had introduced Gap brand apparel in a limited manner to customers in Mexico.

"As the 10th largest apparel market in the world, Mexico is an important country for us as we expand our franchise presence to Latin America," said Ron Young, senior vice president of international strategic alliances for Gap Inc.