Richard Parry, interim managing director at TfL subsidiary London Underground, said: "The free morning newspaper has become part of the fabric of city life and something Londoners tell us improves their daily tube and bus journeys. 

"The revenue from this lucrative contract will go straight back into funding improvements to public transport in the capital including the upgrade of the Tube."

The value of the seven-and-a-half year contract, which begins on 2 April this year, has not been disclosed.

It is also unclear if anyone ran against Associated for the tender, which covers free distribution at 250 Underground stations and 14 bus stations in the capital.

When TfL announced the tender in May last year, the first tender since the launch of the Metro in 1999, News International was expected to battle with the incumbent contract holders. 

Media speculation also connected Express Newspapers, which made a bid for the original contract, and Alexander Lebedev, who now owns London's Evening Standard, as potential opposition.

Since launching in 1999, the Metro has seen steady increase in readership, as well as covering the majority of Britain's major cities. It now claims to be the third most read newspaper in the country, behind only The Sun and the Daily Mail.