Shoe giant Nike has offered to extend production contracts with two Indonesian factories it had earlier said it would end due to quality concerns.

Nike told the subcontracting factories in early July that it would not be renewing orders after they failed to meet quality standards but the move triggered mass protests from workers.

In a statement, Nike said it was committed to “reaching a reasonable agreement” with the company owning the two factories and has offered to continue production through to July 2008 for one and July 2009 for the other.