Vodafone has said it is to sponsor this year's Derby - months after announcing its decision to pull out.

Last month race bosses warned the prestigious festival may have to go ahead without a sponsor as organisers struggled to find someone to back the event.

The search for a new sponsor began last year when Vodafone, which has sponsored the event for the past 13 years, announced its decision to pull out.

But the company announced today that it was stepping in to sponsor the Derby for one last year.

As part of the deal, Vodafone will also also sponsor the Princess Elizabeth Stakes.

Nick Blofeld, managing director of Epsom Downs racecourse, said: "We are thrilled that Vodafone has decided to sponsor the 2008 Derby and the Princess Elizabeth Stakes."

Simon Lewis, group corporate affairs director at Vodafone, said: ""Following an approach from the Racecourse, we are stepping in this year to support The Derby during this transition phase, whilst the Racecourse focuses on securing a long- term title sponsor for the Derby Festival and completes its redevelopment activities."

This year's festival, which is expected to attract more than 100,000 people and 500million television viewers, will be held on June 6 and 7.