Speedo and Nike are among two of the biggest names in sportswear that are engaging in a silent bidding war to win the rights for Michael Phelps, the record-breaking swimmer who could become the richest Olympian in the history of the Games.

Phelps' multi-million dollar Speedo contract is up for renegotiation in a few months time and Nike is likely to dangle tens of millions of dollars in front of the 14-time Olympic gold medal winner, says one sports industry insider.

"Meanwhile Speedo is going to have to throw even more money at Michael Phelps because if they don't, they might as well waive the white flag and give up the ship," Sports Business News Publisher Howard Bloom told Canada AM on Monday.

"With Michael Phelps, Nike could create an entire new product line and an entire new swimwear line," he said.

Bloom expects Phelps will be the richest Olympian of all time with the potential of earning as much as $1 billion over the next eight years. Tiger Woods is widely expected to become the first billon dollar athlete by 2010.

After breaking swimmer Mark Spitz's 1972 gold medal record, the 23-year-old swimmer is a safe choice for marketers looking to build a long-term brand. Phelps is expected to swim again at the 2012 Summer Games in London, putting him in contention for a career 20-medal sweep in the sport.

Bloom called Phelps a "global iconic brand" and someone whose appeal goes beyond his home country because the Olympics are truly a world stage.

"(He) is the most well-known athlete in the world today, you could do a great deal of successful marketing with that," Bloom said.

Olympic champions don't usually break the bank with lucrative and high-profile contracts in North American like NBA basketball stars or even Tiger Woods for instance. Some Olympians, however; have found celebrity and a fatter wallet overseas. American gymnast Vitaly Scherbo won six golds during the 1992 Olympics and enjoyed superstar status in countries like India -- the same could not be said on this side of the Atlantic. But Phelps could soon change all that.

Nine sponsorship deals from the likes of Speedo, Visa, Omega and Kellogg's contribute to Phelps' $5 million-a-year paycheque. His record-breaking eight golds in Beijing are worth another $50 to $100 million in purse money alone. And Phelps can expect to bring in close to $30 million a year in the short-term, Bloom said.

Bloom credits Phelps with changing -- even saving -- the Beijing Games by taking the focus off China's politics, the beleaguered torch relay and Beijing's smog and back onto sport.

Phelps may have also put dollar signs back alongside the Olympic rings in the minds of sponsors.

And although athletic dominance and sex-symbol status are a killer combination for marketers, Phelps is not exactly the boy next door from Baltimore. In 2004, Phelps pleaded guilty to DUI charges and served 18 months probation. Still, Bloom says Phelps' achievements are undeniable.

"Michael Phelps is a once-in-a-lifetime, once-in-a-generation, athlete," Bloom said.

Much like Phelps, the fastest man in the world is in the process of renegotiating his Puma shoe contract. Jamaica's Usain Bolt is looking to a create bonus clause wherein Puma gives him a payout every time he sets the world record, Bloom said. Bolt breezed his way past his own 100-metre world-record in Beijing on Saturday finishing the race in just 9.69 seconds.

"They are such unique athletes and they are so special unto themselves that, hey, Nike would kill to have a shot at Bolt as with Phelps."